diff --git a/README.md b/README.md index 186b321..dc961d4 100644 --- a/README.md +++ b/README.md @@ -29,16 +29,16 @@ - [Flashbots PM](https://github.com/flashbots/pm) - [Etherscan data on flashbots](https://etherscan.io/blocks/label/flashbots) - [MEV Dashboard by Flashbots](https://explore.flashbots.net/). -- [Sandwiched?](https://sandwiched.wtf/). +- [Sandwiched?](https://sandwiched.wtf/) --- ## Terminology -* Mempool: the set of pending, unconfirmed transactions in the EVM. -* MEV: Maximal (or miner) Extractable Value -* Frontrunning (also known as Priority Gas Auctions (PGAs)): when a miner steals a profitable opportunity (such as arbitrage) for themselves by sending the same transaction with a higher gas price. For example, Transaction A is broadcasted with a higher gas price than an already pending transaction B so that A gets mined before B (eg. to snatch a Uniswap price arbitrage trade to rebalance a pool). -* Backrunning: Transaction A is broadcasted with a slightly lower gas price than already pending transaction B so that A gets mined right after B in the same block. (eg. to execute a DyDx liquidation after a price oracle update that triggers a DyDx loan to go under the required collateralization ratio). -* Sandwiching: profiting off slippage in liquidity pools by buying and selling before and after large transactions posted in the mempool. -* DEX arbitrage: If two DEXes are offering a token at two different prices, one can buy the token on the lower-priced DEX and sell it on the higher-priced DEX. -* Liquidations: if the value of a borrowed asset exceeds the collateral, anyone can liquidate the collateral and collect the liquidation fee for themselves. +* **Mempool**: the set of pending, unconfirmed transactions in the EVM. +* **MEV**: Maximal (or miner) Extractable Value +* **Frontrunning**: also known as Priority Gas Auctions (PGAs), when a miner steals a profitable opportunity (such as arbitrage) for themselves by sending the same transaction with a higher gas price. For example, a transaction A is broadcasted with a higher gas price than an already pending transaction B so that A gets mined before B (eg. to snatch a Uniswap price arbitrage trade to rebalance a pool). +* **Backrunning**: a transaction A is broadcasted with a slightly lower gas price than already pending transaction B so that A gets mined right after B in the same block. (eg. to execute a DyDx liquidation after a price oracle update that triggers a DyDx loan to go under the required collateralization ratio). +* **Sandwiching**: profiting off slippage in liquidity pools by buying and selling before and after large transactions posted in the mempool. +* **DEX arbitrage**: If two DEXes are offering a token at two different prices, one can buy the token on the lower-priced DEX and sell it on the higher-priced DEX. +* **Liquidations**: if the value of a borrowed asset exceeds the collateral, anyone can liquidate the collateral and collect the liquidation fee for themselves.