DeFi Sandwich Traders Get 'Salmonella'

[EAA-ALLAH]

A trader decided to try out an experiment in exploitation as a cautionary tale to all decentralized finance (DeFi) entrants, gaining more than ETH 100 (USD 168,560) in profits from sandwich trading contracts.

"Sandwich trading is a lot of fun, but it's not risk free," said Nathan Worsley, founder and Chief Technology Officer of non-custodial marketplace LocalCoinSwap, pointing to a writeup of his "recent alpha discovery: "Salmonella"."

Sandwich trading is a strategy by which somebody places a trade before - as well as after - a victim trade, so to exploit the resulting slippage, or the difference between the expected price of a trade and the price at which the trade is executed. "In layman's terms, you see that someone will buy an asset, so you buy it first to artificially inflate the price, before selling afterwards at a profit," said Worsley. Source