How to avoid front runners on decentralized crypto exchanges By Cointelegraph

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How to avoid front runners on decentralized crypto exchanges

Decentralized exchanges (DEXs) nip in the bud several issues concerning their centralized counterparts such as concentration of liquidity in the hands of a few players, compromise of funds in case of a security breach, closed control structure and more. One issue, however, that has refused to subside is front-running. Unscrupulous players are still finding ways to defraud unsuspecting traders.

If you have received less than expected when placing a trade on a DEX, there is a pretty good chance of you getting hit by front runners. These bad actors exploit the automated market maker (AMM) model to make profits at the expense of unsuspecting traders.

Use large liquidity pools

Keep maximum slippage low

Overpay on gas

Place a low-value order

Find a taker

Quick matching

Decentralized match engine

Periodic auction matching