BNB Chain Hits Record-High Sandwich Attacks Exposing $1.5 billion in Trades
On December 1, sandwich attacks surged on the BNB Smart Chain, affecting over a third of blocks and leading to more than $1.5 billion in trading volume across 43,400 transactions within a single day. These attacks, which exploit decentralized exchanges (DEX), are increasing concerns regarding DEX vulnerabilities. A notable report highlighted a bot that stole $40 million from over 100,000 victims over three months using such attacks. Sandwich attacks manipulate market behavior by placing buy orders before a victim's transaction to inflate prices and then selling immediately after, leading to profits at the victim's expense. Experts suggest that improving liquidity in DEX pools could reduce these vulnerabilities. Recommendations include incentivizing liquidity provision, using DEX aggregators for splitting trades, and adopting features that limit potential losses from sandwiching. Education is crucial for users, who can protect themselves by utilizing private relayers to conceal trades until execution. This entire situation underscores the urgent need for enhanced security measures in blockchain ecosystems.
Source 🔗