Mempool Front Running Attack How Bots Sniped Transactions

💡 TL;DR

Bots exploit mempool vulnerabilities to front-run transactions, affecting user investments. Learn how to protect your assets from these attacks.

Understanding Mempool Front Running 🚀

In the world of cryptocurrencies, the mempool acts as a waiting room for transactions before they are included in a block. However, this waiting room is not as secure as one might think. Bots can exploit the mempool to execute what's known as front-running attacks, where they snipe transactions by placing their own in front of yours. This tactic can lead to financial losses and erode trust in the crypto ecosystem.

How Bots Snipe Transactions

Front-running attacks occur when a bot observes an incoming transaction in the mempool and quickly submits a competing transaction with a higher gas fee. This ensures the bot's transaction gets prioritized by miners, allowing the attacker to profit from the price changes triggered by the original transaction.

Real-World Example

Consider a scenario where a user intends to buy a large amount of a specific token. A bot detects this transaction in the mempool and submits a buy order for the same token with a higher gas fee. Once the bot's transaction is confirmed, the price of the token increases. The original user's transaction then goes through at this inflated price, allowing the bot to sell the tokens at a profit.

Protecting Your Transactions 🔒

To safeguard your transactions from mempool front-running attacks, consider the following strategies:

Use private mempools: Some services offer private transaction submission, which hides your transaction from public mempools.
Increase transaction fees judiciously: By setting a competitive gas fee, you can minimize the chances of your transaction being front-run.
Utilize programmable on-chain rules: Platforms like ZeroSig.xyz offer programmable rules that can help protect your transactions from being sniped.

For a deeper understanding of crypto vulnerabilities, check out our case study on Trezor Firmware Bug Key Leak or learn about Ledger Hardware Wallet Firmware Vulnerability.

🧠 More Reads from the ZeroSig Vault

🧠 Want More Crypto Security Insights?

We break down major hacks, smart contract vulnerabilities, and wallet security design patterns every week.

📣 Join the ZeroSig Beta Tester Telegram
🔐 Explore the vault: https://zerosig.xyz