mev-toolkit/random-notes/MEV/sandwich-tranding-notes.md

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