Farcaster

MEV & Sandwich Attack

When trading tokens on the chain, there is a possibility that someone else will buy before you buy and sell after you buy to make a profit on your spread. This is called a sandwich attack and such a tool is called a clip bot.

For example, if you buy at 1U, someone else buys up the price first, and when you buy the price becomes 2U, and then sells it back to you at 2U. The way to deal with this is to set a lower slippage before you get traded at infinitely too high a price.