Optimized Trade Execution

Optimized trade execution schemes are the least invasive approach to prevent front-running. These approaches adjust the trade parameters to make potential front-running attacks unprofitable. Thus, these schemes have negligible impact on the underlying blockchain system but are limited in scope.

Positives

  • No impact on decentralization
  • No increase in transaction cost
  • Unchanged blockchain's goodput
  • Unchanged blockchain's transaction ordering

Negatives

  • Scope limited to specific applications
  • Slight transaction delay increase
  • Increased competition among similar transactions

Methods

Abbreviations

  1. A2MM : Automated Arbitrage Market Maker
  1. AMM : Automated Market Makers

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