Sandwich Attack Mitigation

Definition ∞ Sandwich attack mitigation refers to strategies and tools designed to prevent or reduce the impact of sandwich attacks in decentralized finance. A sandwich attack involves a malicious actor placing two transactions around a victim’s pending transaction to manipulate the price and profit from the price difference. Mitigation techniques aim to protect users from these front-running strategies, often by obscuring transaction details, using private transaction relays, or implementing advanced order routing algorithms. The goal is to ensure fair execution prices for trades on decentralized exchanges.
Context ∞ Sandwich attack mitigation is a pressing concern in the decentralized finance (DeFi) sector, with news frequently reporting on new exploits and protective measures. The current situation involves continuous innovation in transaction privacy and order flow management to counter sophisticated MEV (Maximal Extractable Value) strategies. A critical future development involves the widespread adoption of secure transaction ordering mechanisms and private mempools to create a more equitable trading environment. These efforts are essential for user trust and the sustained growth of DeFi.