Dex Aggregator 1inch Will Prevent Frontrunning Against Metamask Users

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Last Updated on November 27, 2022 by Bitfinsider

1inch, a decentralized exchange aggregator, is releasing a feature called RabbitHole that is aimed to protect MetaMask users against a specific type of frontrunning.

The problem at hand involves sandwich assaults. This occurs when a trader purchases a token in advance of a massive buy order, driving up the price. The token’s price increases after the purchase order is executed, at which time the trader sells at the increased price (or vice versa for the whole maneuver). It leads to the victim’s deal being performed at a poorer price.

This is due to the fact that blockchain transactions are often broadcast to the whole network and it takes some time before they are included in blocks on the chain. Therefore, traders who are able to get their transactions onto the blockchain early — through a variety of techniques — can frontrun deals if it’s lucrative.

RabbitHole searches for transactions that are susceptible to sandwich attacks. If it decides a transaction is susceptible to this type of attack, it employs a different mechanism to insert the transaction into the blockchain. It transmits the transaction immediately to a validator, such as Flashbots, so preventing its public dissemination.

RabbitHole is originally free to use and is aimed for MetaMask users. In the future, 1nch may commercialize the functionality based on user feedback.

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