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1inch releases a new tool to protect traders from “sandwich attacks” by Cointelegraph

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1 inch releases a new tool to protect traders from “sandwich attacks”

The 1-inch exchange aggregator released a new tool called “Rabbithole” on November 25, which the company says will protect traders from malicious “sandwich attacks.” The team announced the launch of the tool in a press release made available to Cointelegraph.

Rabbithole works by allowing users to send transactions directly to nodes, bypassing mempool. In order to use it, users need to change the Remote Procedure Call (RPC (NYSE :)) endpoint in their crypto wallet. Then, each swap starting across 1 inch will be analyzed by a proprietary tx routing algorithm developed by the 1 inch team and then sent to validators directly if there is a possibility of a sandwich attack.

  1. The attacker scans the blockchain’s collection of notes until it finds a transaction with a high value
  2. The transaction is sent to the victim’s purchase in the foreground, and a higher amount of gas is paid to ensure that the attacker’s transaction is processed before the victim’s transaction. This early transaction pumps up the price of the coin you are about to buy, causing the victim to pay more
  3. After the victim’s transaction has been processed, the attacker submits a second transaction to sell his coins, pocketing the price difference