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How to Avoid Front-Running on a Decentralized Exchange

Front-running on a decentralized exchange (DEX) occurs when an attacker sees your pending transaction and inserts their own transaction ahead of yours to profit at your expense. To avoid it, use private transaction relay services, set slippage tolerance low, trade with limit orders instead of market orders, and avoid trading during high network congestion when MEV bots are most active.

What front-running looks like

When you submit a swap on a DEX like Uniswap or SushiSwap, your transaction sits in the public mempool - the queue of pending transactions visible to anyone running a full Ethereum node. MEV (Maximal Extractable Value) bots scan this mempool for profitable opportunities. A front-running bot sees your buy order for a token, buys the same token first (driving the price up), then sells after your transaction executes at the inflated price. You get fewer tokens for your money, and the bot pockets the difference.

The same mechanism can work in reverse on sell orders: the bot sells before you, drops the price, then buys back cheaper after your sell executes.

Methods to avoid front-running

1. use private transaction relay services

These services send your transaction directly to a miner or validator, bypassing the public mempool. Your order is invisible to bots until it is included in a block.

To use these, you typically change your RPC endpoint in MetaMask or your wallet to the relay service's URL. The transaction costs the same gas, but you pay no extra fee - the relay earns from miner tips.

Trade-off: Private relays can sometimes fail to include your transaction if the block is full or the relay is overloaded. You may need to retry.

2. set slippage tolerance low

Slippage tolerance is the maximum price change you will accept during a swap. If a bot sees your transaction with 5% slippage tolerance, they can profitably push the price 4% against you. Lower the tolerance to 0.5% or 1% to reduce the profit available to a front-runner.

Risk: Too low slippage can cause your transaction to fail during volatile conditions. Use a private relay if you need tight slippage.

3. Use Limit Orders Instead of Market Orders

Limit orders execute at a specific price or better, rather than at the current market price. They are not submitted as pending transactions that bots can front-run.

Limit orders may take longer to fill or may not fill at all if the price moves away from your target.

4. avoid trading during high congestion

When network congestion spikes - typically during a popular NFT mint, a major token launch, or a DeFi exploit - MEV bots are most aggressive because there are more opportunities. If you must trade during these periods, always use a private relay.

Check current network congestion on Etherscan's "Gas Tracker" page. If base fees are above 50 gwei, expect heavy bot activity.

5. Use a DEX Aggregator with Built-In MEV Protection

Aggregators like 1inch, ParaSwap, and Matcha already route trades through private relays when available. They also compare prices across DEXs to find the best rate, which can mitigate the cost of front-running even if you are not using a private relay.

6. Increase Gas Price Strategically (Rarely Works)

Some traders try to "outbid" bots by paying a very high gas price, hoping their transaction lands before the bot's. This rarely works because bots can also raise their gas price, and you end up overpaying. Do not rely on this.

What not to do

Summary of best practices

Method Effectiveness Complexity
Private relay (Flashbots, MEV Blocker) High Low (change RPC)
Low slippage tolerance Medium Low
Limit orders (CowSwap, 1inch) High Medium
Avoid congestion Low (not always possible) Low

For most routine trades on a DEX, setting low slippage and using a private relay via Flashbots Protect is the simplest effective approach. For large trades or tokens with low liquidity, use a limit order through CowSwap or Uniswap X.

Not financial advice. bidenerc.site publishes market data and general information about Biden Coin. Crypto assets are volatile and you can lose everything you put in. Nothing here is a recommendation to buy, sell or hold, and we make no price predictions.

Prices are sourced from third parties and may be delayed or wrong. Verify anything you intend to act on against a primary source.

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