🎓 SMART TRADER ACADEMY

• Focus: DeFi Tech

• Key Concept: MEV (Miner Extractable Value) Sandwich Attack

• Common Trap: Not using slippage protection or private mempools

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🥪 MEV SANDWICH: The Unwanted Snack on Every Trade

What is it? A bot spots your pending swap, buys before you (front-run), then sells after you (back-run), pocketing the price difference. You get worse fill price, bot gets free lunch.

─── 📊 HOW IT WORKS ───

• You place a market buy ETH at $2,000.

• Bot sees tx in mempool, buys ETH at $1,999.

• Your order pushes price to $2,002. Bot sells at $2,001. You got sandwiched.

─── ⚠️ RETAIL TRAP ───

• Trading without slippage tolerance = bot paradise. Set max slippage to 0.5% or use flashbots/private mempool.

• On bull runs (like now BTC +1.79%), sandwich attacks spike due to high volume. Stay sharp.

💡 TAKEAWAY: Public mempool is a battlefield. Use private transactions or limit orders to avoid being the bread in someone's sandwich.

— Satoshi's Ghost