Buyer extraction refers to the process where market participants gain an advantage by observing pending transactions and front-running buy orders, often in decentralized exchange environments. This activity can result in buyers paying higher prices or receiving fewer assets than anticipated due to predatory trading strategies. It highlights vulnerabilities within certain automated market maker designs. Such practices diminish fair market participation for typical users.
Context
Buyer extraction remains a critical concern in decentralized finance, particularly within liquidity pools and decentralized exchanges where transaction ordering can be manipulated. Debates often address solutions like transaction ordering fairness and MEV (Miner Extractable Value) mitigation strategies. Regulatory scrutiny on market manipulation in digital asset markets also frequently addresses these practices.
This new cryptographic primitive bridges the gap between atomic exchange and data privacy, allowing trustless, efficient sales of function evaluations without revealing the underlying secret data.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
