When using Binance Alpha, never turn off MEV protection, be careful of sandwich attacks🏹🏹

When using Binance Alpha, if you deposit 1000 USDT, why do you only get back 950 USDT? You may have encountered front-running and sandwich attacks.

What is a sandwich attack❓ (Sandwich Attacks):

👉🏻 Malicious bots manipulate prices by inserting their own trades before and after a user's trade, causing slippage losses for the user.

Example of MEV

👉🏻 Assume a user submits a large ETH to USDT trade on Uniswap:

The MEV bot detects that this trade will cause price fluctuations.

The bot pays a higher gas fee to insert a buy USDT trade before the user’s trade (front-run), driving up the price.

After the user’s trade executes, the bot sells the USDT (back-run), profiting from the price difference.

The user pays more ETH due to the price fluctuations, incurring losses.

How does MEV protection help us❓

MEV protection prevents trade information from being exposed in the public mempool by sending the user’s trade to a private mempool or through specific remote procedure call (RPC) endpoints, thus reducing the risk of being exploited by malicious MEV searchers.

This means sending trades to secure and reliable trading nodes or pools, trading quietly without anyone knowing.🤫

Summary: Not enabling protection carries risks,

it is recommended to enable MEV protection to avoid being sandwiched.