Sandwich attacks

A bot sees a pending DEX swap, buys just before it and sells just after it.

What it means

The swap fills at a worse price and returns fewer coins, while the bot keeps the difference minus its fees; a high max slippage setting leaves more room for this.

What to watch

The max slippage setting on a swap, the size of the swap compared with the pool, and the price actually received versus the price quoted.

How Compass-Alpha uses it

Background only; not used in any figure on Compass-Alpha.