zenefinance / frontrun_bot

A PancakeSwap frontrun bot, also known as a "sandwich attack" or "mev-getter" (MEV stands for "Miner/Maximal Extractable Value").

Frontrun_Bot

A PancakeSwap frontrun bot, also known as a "sandwich attack" or "mev-getter" (MEV stands for "Miner/Maximal Extractable Value"), is a piece of software designed to exploit price discrepancies in decentralized exchanges, specifically on the PancakeSwap decentralized exchange, which is built on the Binance Smart Chain (BSC).

Here's how it works:

1. Monitoring Transactions: The bot constantly monitors the mempool (the pool of unconfirmed transactions) of the Binance Smart Chain.

2. Identifying Profitable Opportunities: When the bot detects a large trade or a transaction with a potentially significant price impact, it calculates the optimal time to execute its own transaction to front-run the original one.

3. Front-Running: The bot sends a transaction with slightly higher gas fees to ensure that it gets included in the next block before the original transaction. It typically involves buying the same asset being sold in the original transaction at a lower price or selling the asset being bought at a higher price, thereby capturing a profit.

4. Completing the Transaction: After front-running, the bot executes a complementary transaction to capture the price difference, often referred to as a "sandwich attack."

5. Profit Extraction: The bot extracts profits from these price discrepancies and repeats the process as it identifies new opportunities.

It's important to note that frontrunning and sandwich attacks are generally considered unethical and potentially harmful to other traders. They can distort market prices and lead to losses for other users. Many decentralized exchanges and blockchain communities are actively working to prevent and mitigate these types of attacks.