The State of Sandwich Attacks

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Research in Progress
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Problem Description

Most existing research on toxic MEV is outdated and draws on data from an era where the majority of DEX trades were sent through the public mempool. We aim to re-evaluate toxic MEV under today’s market conditions and examine the impact of rising private orderflow—projecting how sandwiching is likely to evolve.
 
We would like to characterize the losses suffered by traders in the public mempool from sandwich attacks, as well as how accurately different data sources characterize toxic MEV. In particular, the switch between jaredfromsubway.eth’s v1 v.s. v2 contract seems to have caused a meaningful drop in sandwich detection as jaredfromsubway is now more prone to using third-party trades as a source of liquidity to move prices on DEXs.
 
In addition, we should analyze the different approaches taken to mitigate sandwich attacks and shed light on their relative advantages and drawbacks:
 
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