DeFi

1inch RabbitHole Protects MetaMask Users From Sandwich Attacks

With the help of a new feature dubbed RabbitHole, 1inch hopes to shield MetaMask users from a specific type of frontrunning.

For the time being, RabbitHole is free to use and is intended for MetaMask users. In the future, 1inch might monetize the feature depending on user feedback.

Users may be subjected to a “sandwich attack,” a strategy for extracting the maximal extractable value (MEV) when trading on decentralized exchanges.

Here, a trader buys the token ahead of a huge purchase order, driving up the price. The price of the token increases once the purchase order is executed, at which time the trader sells at the new, higher price. As a result, the deal is carried out at a lower price for the victim.

Sandwich attacks still manipulate cryptocurrency values by exploiting the underlying technology of decentralized exchanges while not being strictly unlawful. Additionally, a sandwich attack could cause a user to suffer significant losses.

This occurs because blockchain transactions are often broadcast to the whole network and take time to be incorporated in chain blocks. Therefore, if it’s profitable enough, traders who can get their transactions into the chain early can frontrun trades.

Transactions that might be the target of such sandwich attacks are flagged by RabbitHole.

When a transaction is thought to be susceptible to such an attack, an alternate mechanism is used to enter the transaction into the blockchain. It prevents the transaction from being broadcast to the public by sending it immediately to a validator, like Flashbots.

The RabbitHole is designed as a proxy, connecting 1inch users’ MetaMask wallets and Ethereum validators. Its unique algorithm will check swap transactions on 1inch for the threat of a sandwich attack, and if such a threat is detected, the transaction will be sent directly to validators using one of the aggregated providers.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Zircuit Launches ZRC Token: Pioneering the Next Era of Decentralized Finance

George Town, Grand Cayman, 22nd November 2024, Chainwire

9 minutes ago

Inflation Warning By Vanguard Amid Tariffs And Labor Issues

Inflation Warning by Vanguard highlights risks during Trump’s term, citing tariffs and tighter labor markets…

25 minutes ago

Clanker Token Trading Volume Hits $59.8 Million High

Clanker token trading volume hit $59.8M on Nov 21, accounting for 14.75% of PumpFun. Fee…

53 minutes ago

Bitcoin Spot ETF Inflows Hit $1 Billion Led By BlackRock

Bitcoin Spot ETF inflows hit $1.005B on Nov 21, led by BlackRock’s $608M and Fidelity’s…

1 hour ago

New York Techie Bagged $72M from $15K Investment in Ethereum — Here’s How BlockDAG Can Offer Similar Jackpot

Discover the success story of a New York tech entrepreneur who made $72M from a…

2 hours ago

Best Altcoins to Buy Today: Qubetics Rides 1000x Potential to Hit $2.6M, Ethereum Stays Rangebound, Tron USDT Transactions Hit $52B

Discover the best cryptos to buy and hold today: Qubetics leads with 1000x potential, Ethereum…

3 hours ago

This website uses cookies.