In the world of DeFi, do you think the biggest enemy is a Hacker? Not quite. The enemy eroding your account daily is MEV (Maximal Extractable Value) Bots. This is legal robbery flow, where high speed algorithms insert orders to siphon money from innocent traders pockets.
🔸 The Sandwich Attack Mechanism. This is the most common form of MEV. Imagine you place a large buy order tokens with a Slippage tolerance of 5%.
An MEV Bot scans the Mempool and spots your juicy buy order waiting for confirmation.
The Bot immediately sends a Buy order for the same token with a slightly higher Gas fee. The Bot order gets prioritized by miners 👉 Pushing the token price up.
Your order executes right after, but at a sky high price. You receive fewer tokens than expected.
Immediately, the Bot sells the tokens it just bought onto you to lock in profit from the spread.
👉You get sandwiched. You lose instantly, while the Bot makes a Risk free profit.
🔸 How To Prevent It:
Do not be lazy and leave Slippage on Auto or too high above 1%. Adjust it to the lowest possible level 0.1% to 0.5%.
Instead of the public network, add secure RPCs to your wallet. It hides your transaction from the public Mempool, making you invisible to Bots.
🔹 MEV is the hidden tax of Blockchain. Where there is high volatility and deep liquidity, MEV Bots swarm. Do not just look at Gas fees. Factor in MEV costs. Losing 2% on a swap because of a Bot attack is far more painful than paying a few extra dollars in Gas. Learn to protect yourself in this Dark Forest.
The last time you swapped, did you check if you received the expected amount of tokens, or was there a shortfall?
News is for reference, not investment advice. Please read carefully before making a decision.
