DeFi | Why do on-chain swaps get “sandwiched”?
The higher the slippage tolerance set by users, the more profit sandwich bots can make from the price difference.
The profits from sandwich trading come from the price loss suffered by the users who get sandwiched—which is an invisible cost for ordinary users.
A quick look: $ETH , current price 2267.63, 24h -1.08%.
Every return comes with a corresponding risk. Understand the worst-case scenario first.
The higher the slippage tolerance set by users, the more profit sandwich bots can make from the price difference.
The profits from sandwich trading come from the price loss suffered by the users who get sandwiched—which is an invisible cost for ordinary users.
A quick look: $ETH , current price 2267.63, 24h -1.08%.
Every return comes with a corresponding risk. Understand the worst-case scenario first.