Binance Alpha dogs don't...

刷! Dogs don't brush, I brush! Sorry, sister, I was too foolish before, from now on I will kneel and brush.

In the past two days, I just started brushing Binance Alpha and found that many people's losses mainly come from clips. Let's first introduce how the clip works, and then think about how to avoid being clipped based on the working principle to reduce the losses from brushing Alpha.

Firstly, what is the clip doing:

The English name for the clip is sandwich attack, which is quite vivid. It uses two transactions to sandwich the transaction of the victim in the middle. So why can sandwiching the victim in the middle achieve profit?

In fact, every buy and sell we make will cause price fluctuations to some extent. The so-called market manipulation is essentially large amounts of buying and selling. Therefore, if we detect a transaction about to be bought, buy before it and sell immediately after, we can profit from the price increase caused by this transaction.

Therefore, the clip is actually a very deterministic fast mouse warehouse. It treats each of our transactions as a庄, buying before us and then selling immediately after us. Because it gets ahead of us in the transaction, it pushes up the price, resulting in the increase of our actual buying cost, which is the source of our loss.

Let's take a look at its workflow:

1. Monitor the memory pool, find transactions in the memory pool that have not yet been included in a block.

2. Calculate the maximum profit that can be clipped for each transaction based on the slippage set for each transaction. Therefore, as long as the profit can compensate for gas and bribery, the clip will definitely push this transaction to execute at the set maximum slippage, this is the evil that the clip is doing.

3. Generate a transaction bundle, select this transaction, bind it between the two transactions of the clip, and push the entire bundle to the mev node, which will treat this bundle as a single transaction and execute it.

So, how to avoid being clipped, two directions:

1. Let the clip not detect the transaction:

Find chains without public memory pools to brush transactions; your transactions cannot be monitored, thus avoiding most clips. BSC has a public memory pool, but you can turn on mev protection.

2. Reduce the potential profit of the transaction being clipped, so that the profit of executing this set of transactions is not enough for gas, and it will not take action.

a. Try to find liquidity pools with good liquidity

This way, the price movement caused by your transaction will be limited, and thus the clip's profit will also be limited.

b. Lower the slippage

This can reduce the profit space of the clip, but lowering the slippage also needs to be controlled by oneself, because your transaction itself will cause slippage. If the pool's liquidity is poor, and your single transaction amount is high, lowering the slippage too much will cause the transaction to fail.

c. Reduce the amount of each transaction

To sum it up:

Turn on mev protection, trade with a small amount multiple times to find the best liquidity pool, and lower the slippage.

Sometimes, clever operations can also reverse utilize the clip, which is to increase the slippage deliberately to give the clip profit, allowing the clip to help you execute the transaction so that you can act faster than everyone else when they are pulling gas to抢买入/卖出.