MEV Protection: How to Avoid Front-Running and Sandwiching Bots

What Is MEV?

MEV (Maximal Extractable Value) is a critical concept in blockchain and decentralized finance (DeFi). It represents the maximum value extractable from DeFi protocols or smart contracts by users, often through transaction reordering by miners/validators. MEV strategies exploit:

• Transaction Ordering: Prioritizing high-fee or self-interested transactions.
• Front-Running: Executing trades ahead of others to capitalize on pending transactions.
• Arbitrage: Exploiting price discrepancies across exchanges or liquidity pools.

👉 Learn how MEV impacts your trades

The Role of MEV in Cryptocurrency

MEV is intrinsic to Ethereum’s ecosystem, where validators manipulate transaction order to maximize profits—often via "front-running." This decentralized feature can:

• Incentivize miners to create blockchain forks, risking network security.
• Prioritize profit-driven transactions over fair sequencing.
• Lead to predatory strategies like sandwich attacks (exploiting price slippage).

Common MEV Strategies

1. Arbitrage Bots

Miners exploit price gaps between decentralized exchanges (DEXs), front-running other traders.

2. Back-Running

A miner executes a sell order after a large buy order, profiting from induced price movements.

3. Sandwich Attacks

Miners place buy/sell orders around a victim’s transaction, manipulating prices for profit.

👉 Protect your transactions from MEV

MEV Protection Tools

QuickNode’s MEV Protection

QuickNode’s marketplace offers MEV Protection & Private Reinforced Transactions, featuring:

• 40% lower drop rates via automatic transaction reinforcement.
• On-chain privacy to shield transaction details.
• Faster processing by broadcasting directly to block builders.

Implementation Example

{
  "id": 1,
  "jsonrpc": "2.0",
  "method": "eth_sendRawTransaction",
  "params": [
    "0xf869018203e882520894f17f52151ebef6c7334fad080c5704d77216b732881bc16d674ec80000801ba02da1c48b670996dcb1f447ef9ef00b33033c48a4fe938f420bec3e56bfd24071a062e0aa78a81bf0290afbc3a9d8e9a068e6d74caa66c5e0fa8a46deaae96b0833",
    "customer-123"
  ]
}

RPC Endpoint Armor

QuickNode’s Endpoint Armor secures client-side RPC endpoints with:

• Rate limiting to prevent abuse.
• Customizable RPC method restrictions (e.g., blocking high-risk calls).
• Secure URL management without disrupting standard endpoint functionality.

How to Use:

1. Navigate to QuickNode’s dashboard.
2. Select "Endpoint Armor" and activate a free subscription.
3. Configure limits globally or per visitor.

FAQs

Q1: How does MEV affect everyday traders?

MEV can lead to failed transactions or higher costs, as bots prioritize profitable opportunities over fair execution.

Q2: Can MEV protection eliminate front-running?

While tools like QuickNode’s reinforced transactions reduce risks, 100% elimination is challenging due to blockchain’s decentralized nature.

Q3: Is RPC Endpoint Armor free?

Yes, QuickNode offers a free tier with basic rate-limiting features.

Q4: What’s the difference between MEV and gas fees?

Gas fees compensate miners for computation; MEV is extra profit from transaction ordering.

Q5: Are sandwich attacks illegal?

No, but they’re ethically contentious. Protection tools help mitigate their impact.