Sandwich attacks

Tao Yan and Claudio J. Tessone

Chapter 39 in Elgar Encyclopedia of Cryptocurrencies, Blockchain and DLT, 2026, pp 195-197 from Edward Elgar Publishing

Abstract: A sandwich attack is a type of decentralized finance (DeFi) strategic exploit in which an attacker manipulates the order of transactions to profit from price movements caused by another transaction that has been relayed to the mempool, but not yet validated and inserted into a block. This attack is feasible because certain liquidity pools on decentralized exchanges lack sufficient liquidity, allowing for manipulation of the price. As DeFi platforms also provide flash loans without requiring collateral, attackers can exploit transactions without using their assets. The name “sandwich attack” comes from the attacker's strategy of “sandwiching” a victim's transaction between two of their own, similar to the sandwich investments in traditional finance.

Keywords: Sandwich attack; Liquidity; Slippage; AMM; DEXs (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035339952
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