📊MEV Protection

Tradersdex is committed to safeguarding users’ transactions from Miner Extractable Value (MEV) attacks, such as front-running, back-running, and sandwich trades.

They can lead to unexpected slippage, higher gas costs, or lost value. To minimize MEV risk, we employ the following measures:

1. Private Transaction Relay (Flashbots Integration) All swap and liquidity-provision orders placed on Tradersdex are routed through an off-chain, MEV-resistant relay (e.g., Flashbots) rather than being broadcast directly to a public mempool. By submitting transaction bundles to a trusted relay, we ensure that orders are only visible to participating block producers at the moment of block inclusion, preventing third parties from observing and preempting them.

2. Batching & Time-Weighted Execution Whenever network conditions permit, Tradersdex aggregates incoming orders into short, discrete “batches” (e.g., every 10 seconds) rather than executing each transaction immediately in isolation. Within each batch, trades are sorted deterministically (e.g., by timestamp or price) and executed at a uniform, single reference price. This approach prevents any one order from observing and exploiting price movements caused by others in the same batch.

3. Priority Gas Auctions (PGAs) Mitigation To avoid “priority gas auction” scenarios—where bots continuously outbid one another to front-run a lucrative transaction—Tradersdex caps the maximum gas price for swap submissions routed through our relay. If extreme gas bidding is detected, the system holds new orders until the congestion subsides or automatically reprioritizes them into the next batch, thus removing incentives for pay-to-priority MEV tactics.

4. Predictable Pricing Mechanism For limit and conditional orders, Tradersdex employs a time-weighted average price (TWAP) model over a short window (e.g., 60 seconds). Instead of setting a transaction to execute at an exact on-chain block price, TWAP spreads the execution across multiple blocks. This reduces the ability of MEV bots to pinpoint the precise moment of execution and front-run users’ orders.

5. Decentralized Matching Engine Our matching engine runs on a permissionless, accountable network of validators. Order books and matchings are cryptographically signed and published only after a consensus round, ensuring that no single party can reorder or insert malicious trades. Validators are rotated periodically, and all matching proofs are publicly auditable on Tradersdex’s transparency dashboard.

6. Gas Fee Buffer & Slippage Protection Users can specify a maximum slippage tolerance and a “gas fee buffer” percentage. When a submitted order risks breaching the slippage limit (due to detected MEV-driven price movement), the transaction is automatically cancelled off-chain, avoiding on-chain execution. Likewise, if gas price volatility suggests an MEV attack is imminent, the buffer triggers a resubmission at a safer gas price bracket or defers execution until conditions normalize.

7. Ongoing MEV Monitoring & Audits Tradersdex continuously monitors the on-chain environment for novel MEV vectors (e.g., liquidations, oracle manipulators, or emergent sandwich strategies). We engage independent auditors twice annually to review our MEV-mitigation codepaths, relay configurations, and matching logic, ensuring that protective measures remain up to date as adversaries evolve their tactics.

8. Transparent Reporting & User Education All MEV-preventive measures are documented in our “MEV Transparency Report,” which outlines block-by-block summary statistics (e.g., number of orders protected, average slippage saved, gas fees optimized). We also publish quarterly blog posts explaining current MEV trends, typical attack profiles, and recommendations for users to further safeguard their assets (e.g., optimal slippage settings, batched‐order timing).

By combining private relays, batch execution, deterministic matching, and proactive monitoring, Tradersdex strives to create an execution environment where MEV extraction opportunities are minimized and user outcomes remain as fair and predictable as possible. If you have any questions about our MEV protection protocols or wish to report suspicious activity, please contact our support team at [e-mail].