defi-research

How sr-AMM Neutralize Sandwich Attacks - And Enable Fair Launches (feat. Plasma AMM/gavel.xyz)  

1/ Ever had your AMM trade front-run, paid inflated prices, then watched attackers profit from your slippage?  

That's a sandwich attack - extracting $300M+ annually from DeFi. 

https://x.com/jarxiao/status/1802759996020547734… 

Meet the sr-AMM:  a new design that makes sandwiching unprofitable by design.  

#DeFi #AMM #MEV #Blockchain #Crypto 

🧵👇

2/
Classic Sandwich Mechanics:

1️⃣ Attacker frontruns buy → price ↑
2️⃣ Your trade executes at worse price
3️⃣ Attacker backruns sell → price ↓

→ Risk-free profit for bot, worse execution for you, slippage loss for LPs

Love Tech + Art. 

Web3 Writing at: https://paragraph.com/@petervn

3/
Why Possible? 

Traditional AMMs:
Instant price updates (x*y=k)

Atomic block execution
→ Predictable price impact enables MEV extraction.

4/ sr-AMM Solution: Time-locked price invariants (https://umbraresearch.xyz/writings/sandwich-resistant-amm…)  

Core innovation:  

- Swap prices locked per time window (e.g., 1 block)  

- Buys ratchet prices up permanently within a window  

- Sells must first offset accumulated buy pressure  

→ No risk-free reversal opportunities.

3/
Why Possible? 

Traditional AMMs:
Instant price updates (x*y=k)

Atomic block execution
→ Predictable price impact enables MEV extraction.
https://threesigma.xyz/blog/amm/mastering-amm-order-books-and-intents#Current-Problems-in-AMM-DEX-Space-387d3f0e7915