Batch Swap Vulnerability

Definition ∞ A weakness in smart contract code that permits malicious actors to manipulate multiple token exchanges within a single transaction block. This flaw can allow an attacker to unfairly profit by front-running or sandwiching legitimate trades. Such a vulnerability typically arises from improper handling of transaction ordering or insufficient price impact protection during batched operations. It undermines fair market execution and user trust in decentralized exchanges.
Context ∞ Reports on decentralized finance exploits frequently highlight batch swap vulnerabilities as a vector for significant financial losses. Developers continually audit smart contract code for these and similar reordering attack vectors to safeguard user funds. The ongoing challenge involves designing efficient batch processing while mitigating the potential for manipulative trading practices.