Definition ∞ MEV Bot Frontrunning describes a predatory trading strategy where automated bots detect pending transactions on a blockchain and then submit their own transaction with a higher fee to ensure it is processed first. This allows the bot to profit from the price movement caused by the original transaction, effectively “frontrunning” it. This activity exploits the transparency of public transaction pools and the ordering mechanism of blockchain networks. It represents a form of market manipulation within decentralized finance.
Context ∞ MEV Bot Frontrunning is a contentious issue frequently discussed in cryptocurrency news, particularly concerning fairness and efficiency in decentralized exchanges and DeFi protocols. While technically permissible within current blockchain designs, it raises ethical concerns and can lead to financial losses for regular users. Ongoing research and protocol upgrades aim to mitigate MEV frontrunning by introducing mechanisms like private transaction pools or alternative transaction ordering.
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