Column
December 4, 2024 12:01 PM
Sandwich attacks on the BNB Smart Chain reached unprecedented levels on December 1, with over a third of all blocks containing transactions targeted by the exploit. These attacks affected $1.5 billion in trading volume across 43,400 transactions in a single day, as per Dune Analytics data.
The rising prevalence of sandwich attacks highlights vulnerabilities within decentralized exchanges (DEXs), where attackers manipulate transaction order to profit at the expense of other users. Automated maximal extracted value (MEV) bots enable this exploit, taking advantage of how DEX infrastructure processes transactions in the public mempool.
:Industry experts suggest solutions like incentivizing liquidity, splitting trades across pools using DEX aggregators, and employing minimum expected return features to counter such attacks. Users are also encouraged to use private relayers to conceal transactions.
The surge in sandwich attacks underscores the need for robust security measures within the DEX ecosystem. Protocols and users must adopt better practices to prevent exploitation and safeguard trading activity.
Disclaimer: Backdoor provides informational content only, it is not offered or intended to be used as legal, tax, investment, financial, or other advice. Investments in digital assets involve risk, and past performance does not guarantee future results. We recommend conducting your own research before making any investment decisions.