Front-Running
trading · attack
Front-running means acting on knowledge of a pending trade or transaction to execute first and capture an advantage.
Front-running exploits knowledge of incoming orders by placing a higher-priority transaction to execute first. In public mempools, bots can observe pending swaps and bid more fees to be included earlier.
Common mitigations include tight slippage protection, private order flow, commit-reveal schemes, frequent batch auctions, and DEX designs that reduce ordering advantages.
Related terms
Mempool
→A node's local set of unconfirmed transactions accepted for possible relay and block inclusion.
blockchain · node
Decentralized Exchange
→A decentralized exchange (DEX) lets users trade digital assets from their wallets through smart contracts or peer-to-peer settlement.
trading · exchange · blockchain