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Onchain Economics

Frontrunning

Placing a transaction ahead of a known pending transaction to profit from the anticipated price movement.

In-Depth Explanation

In traditional finance, frontrunning is illegal insider trading. In crypto, it's a structural issue: pending transactions are visible in the mempool, letting anyone pay higher gas to cut in line. MEV searchers and bots frontrun profitable trades, arbitrage opportunities, and liquidations. Private transaction pools offer partial protection.

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