diff --git a/notes/MEV/sandwich-tranding-notes.md b/notes/MEV/sandwich-tranding-notes.md new file mode 100644 index 0000000..52ae5c2 --- /dev/null +++ b/notes/MEV/sandwich-tranding-notes.md @@ -0,0 +1,5 @@ +## Notes on Sandwich trading + +* To sandwich, a searcher will watch the mempool for large DEX trades. +* A searcher can calculate the approximate price effect of this large trade and execute an optimal buy order immediately before the large trade, then executing a sell order immediately after the large trade (selling it for the igher price caused by the large order). +* Sandwiching is riskier as it isn't atomic an it's prone to [salmonella attack](https://github.co/Defi-Cartel/salmonella)