Have you ever complained that DeFi is less fair, more expensive, and less efficient, well that's Toxic flow in action, and if not addressed at the structural level, it slows down the long-term growth of the entire ecosystem.
💥 What's Toxic Flow?
In a layman understanding, toxic flow happens when certain traders consistently exploit others because they have better speed, better information, or better positioning. This usually comes from: Arbitrage bots exploiting slow price updates, Latency advantage or even Sandwich attacks.
💥 Why Defi still suffer Toxic flow today:
DeFi still suffers from toxic flow today because most of its core infrastructure was not designed to prevent it from the start.
First, transaction ordering is still a race on many blockchains, transactions are processed based on who pays higher fees or arrives first. This creates a speed competition where bots and advanced traders consistently outperform regular users. Unlike these chains, $FOGO Chain integrated a solution from ground up to tackle such lapses.
💥How Fogo’s Ecosystem Fix: Change the Market Structure.
@Fogo OfficialNetwork approaches the problem differently, instead of patching toxic flow, it tries to reduce it at the foundation by implementing the following:
• Grouping orders into short time intervals and executes them together. Removing every possible advantage any order being milliseconds faster and uniform clearing prices.
• Reduces the ability of bots and validators to exploit order flow in order to ensure market integrity, price fairness and predictable execution.
Toxic flow doesn't just hurt traders alone, it's one of DeFi’s biggest hidden weaknesses that damages liquidity providers, reduce trust, increase cost and ultimately push capital away.
#fogo
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