Order Flow Propagation

Order flow propagation is the process by which a trade request moves from a user's wallet to the mempool and eventually to a validator. In decentralized markets, this process is susceptible to front-running and sandwich attacks.

The speed and path of propagation determine whether a trader gets their desired price or falls victim to adverse selection. Understanding the mechanics of propagation is vital for market makers and liquidity providers who must protect their quotes.

Advanced traders often use private relay networks to bypass public mempools and ensure faster, more secure order execution. This is a critical component of market microstructure in the crypto space.