Why do on-chain swaps get “sandwiched”?
After Ethereum switched to proof of stake, many blocks were assembled by professional block builders through MEV-Boost, with validators selecting the highest-bidding block. MEV (maximal extractable value) refers to the extra profit made by changing the order of transactions in a block, inserting transactions, or removing them.
The profit from a sandwich trade comes from the extra price paid by the user caught in the middle. For ordinary users, this is effectively a hidden transaction cost.
One last price: $ETH quoted at 2223.47 (24h -4.19%).
After Ethereum switched to proof of stake, many blocks were assembled by professional block builders through MEV-Boost, with validators selecting the highest-bidding block. MEV (maximal extractable value) refers to the extra profit made by changing the order of transactions in a block, inserting transactions, or removing them.
The profit from a sandwich trade comes from the extra price paid by the user caught in the middle. For ordinary users, this is effectively a hidden transaction cost.
One last price: $ETH quoted at 2223.47 (24h -4.19%).