Frontrun

Door CoinGecko | Bijgewerkt op Aug 28, 2020
In traditional finance, frontrunning or tailgating is a practice where traders or brokers execute a trade before a prior large order is executed. The said trader or broker will then sell their trades higher to the large order, owing to the order's slippage tolerance. This is highly illegal and unethical in the traditional finance. In the cryptocurrency context, frontrunning works the same but in DEX's where orders made are broadcasted to the blockchain for all to see, a frontrunner will attempt to listen to the blockchain to pick up suitable orders to frontrun by orders on the market and placing enough fees to have the transaction mined faster than the target's orders.

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Gerelateerde termen

Gwei
The monetary domination of gas, involving Ether
Shilling
One who poses as a enthsiastic customer to swindle others as a form of covert advestising.
Byzantine Generals’ Problem
A term used to describe the situation a single strategy which requires consensus from all members within a group who cannot be trusted or verified
ROI
Short for “Return on Investment”, the ratio between the net profit and cost of investing.
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