Sandwich Attack Prevention

Definition ∞ Stopping front-running in trades. Sandwich attack prevention refers to mechanisms and protocol designs implemented to protect users from a specific type of front-running attack in decentralized finance (DeFi). In a sandwich attack, an attacker places two transactions around a victim’s transaction, profiting from the resulting price manipulation. These prevention methods aim to ensure fair trade execution and protect users from predatory trading practices. It is critical for maintaining trust and integrity in decentralized exchange environments.
Context ∞ Sandwich attack prevention is a pressing issue in decentralized finance, frequently appearing in news concerning the security and fairness of Automated Market Makers (AMMs) and other on-chain trading protocols. Developers are actively exploring various solutions, including encrypted transaction pools, batch auctions, and proposer-builder separation (PBS), to mitigate these exploits. Future advancements are expected to result in more robust and widely adopted defenses, creating a safer and more equitable trading environment for all participants in decentralized exchanges.