Methodology involves an automated agent placing a buy order immediately before a target transaction and a sell order immediately after it in the block sequence. This maneuver capitalizes on the price impact created by the victim’s transaction, effectively sandwiching it between two trades executed by the attacker. The primary target is typically a large trade on a decentralized exchange or an oracle update transaction.
Transaction
Sequencing is the critical element, as the attacker must secure inclusion in the block immediately preceding and immediately following the victim’s transaction. This requires either paying a higher gas fee or direct payment to the block proposer for precise ordering.
Slippage
is the direct cost imposed on the victim, as their intended execution price is worsened by the attacker’s front-running buy order, and their subsequent price realization is negatively affected by the back-running sell order.
Meaning ⎊ Real-Time Threat Hunting provides an essential proactive defensive framework to secure decentralized derivative markets against adversarial exploits.
