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🥩 add front run

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bt3gl 2022-09-23 06:05:36 -07:00 • committed by GitHub
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MEV/frontrunning-notes.md
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## Front-running ## 🥩 front-running
<br> <br>
**Front-running is the process by which an adversary observes transactions on the network layer and then acts upon this information by, for instance, issuing a competing transaction, with the hope that this transaction is mined before a victim transaction e.g. Transaction A is broadcasted with a higher gas price than an already pending transaction B so that A gets mined before B.** * process by which an adversary observes transactions on the network layer and then acts upon this information by, for instance, issuing a competing transaction, with the hope that this transaction is mined before a victim transaction.
* example: transaction A is broadcasted with a higher gas price than an already pending transaction B so that A gets mined before B.
<br>
* rather than programming complx algorithms to detect profitable MEV opportunities, some searchers run generalized frontrunners. These are bots that watch the mempool to detect profitable transactions. * rather than programming complx algorithms to detect profitable MEV opportunities, some searchers run generalized frontrunners. These are bots that watch the mempool to detect profitable transactions.
* frontrunners will copy the potentially profitable transaction's code and replace addresses with theirs. Then, they submit the modified transaction with the replaced address and a higher gas price, frontrunning the original transaction and getting the searcher's MEV. * frontrunners will copy the potentially profitable transaction's code and replace addresses with theirs. Then, they submit the modified transaction with the replaced address and a higher gas price, frontrunning the original transaction and getting the searcher's MEV.