How to avoid front runners on decentralized crypto exchanges By Cointelegraph
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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
Continue Reading on Coin Telegraph
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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
Continue Reading on Coin Telegraph