Slippage and MEV Protection: Protecting Your Trades

·

Learn what slippage and MEV are, why they matter, and how to protect yourself from losing money to sandwich attacks and front-running.

What is Slippage?

Slippage is the difference between the expected price of a trade and the actual execution price. It happens because prices can change between when you submit and when the trade executes.

What is MEV?

MEV (Maximal Extractable Value) is profit extracted by reordering, inserting, or censoring transactions. Common MEV attacks include front-running and sandwich attacks.

How to Protect Yourself

  • Use MEV-protected RPC endpoints (Flashbots Protect)
  • Set appropriate slippage tolerance
  • Use DEX aggregators with MEV protection
  • Consider limit orders instead of market swaps