Cryptology ePrint Archive: Report 2021/1628

SoK: Mitigation of Front-running in Decentralized Finance

Carsten Baum and James Hsin-yu Chiang and Bernardo David and Tore Kasper Frederiksen and Lorenzo Gentile

Abstract: Front-running is the malicious, and often illegal, act of both manipulating the order of pending trades and injecting additional trades to make a profit at the cost of other users. In decentralized finance (DeFi), front-running strategies exploit both public knowledge of user trades from transactions pending on the network and the miner's ability to determine the final transaction order. Given the financial loss and increased transaction load resulting from adversarial front-running in decentralized finance, novel cryptographic protocols have been proposed to mitigate such attacks in the permission-less blockchain setting. We systematize and discuss the state-of-the-art of front-running mitigation in decentralized finance, and illustrate remaining attacks and open challenges.

Category / Keywords: applications / front-running, miner extractable value, decentralized finance

Date: received 14 Dec 2021

Contact author: cbaum at cs au dk, jchi at dtu dk, bernardo at bmdavid com, tore frederiksen at alexandra dk, lorg at itu dk

Available format(s): PDF | BibTeX Citation

Note: Under submission.

Version: 20211217:142019 (All versions of this report)

Short URL:

[ Cryptology ePrint archive ]