diff --git a/random-notes/MEV/sandwich-tranding-notes.md b/random-notes/MEV/sandwich-tranding-notes.md index 52ae5c2..c19fb84 100644 --- a/random-notes/MEV/sandwich-tranding-notes.md +++ b/random-notes/MEV/sandwich-tranding-notes.md @@ -1,5 +1,7 @@ ## Notes on Sandwich trading +* Sandwiching is a common situation that occurs when a searcher identifies a large trade in the mempool that will cause an impact on the price of an asset. The searcher buys or sells a calculated amount directly prior to the large trade being executed and then immediately exits their position after the large order has taken place, banking a nice profit. +* The main theme of sandwich attacks is slippage caused by available liquidity in the poo * 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)