Explainer: What are Crypto Sandwich Bots?

submitted 8 months ago by arbitragebotdevelopment to cryptocurrency

DeFi is evolving and so are the trading strategies to attract lucrative returns. Off-late, sandwich trading bots have garnered widespread popularity for their ability to mint profits from price fluctuations.

What are Crypto Sandwich Trading Bots? To put it simply, a crypto sandwich bot is an automated trading tool that monitors large buy/sell orders and places their own order (sandwich) between them. They use a technique called ‘sandwich trading’ that utilizes the price movements of an asset.

The bots take total advantage of the blockchain’s transparency by analyzing the pending orders in the queue in a mempool.

In an industry pacing at a CAGR of 9%, while valuing total revenue at USD 37K MN, traders are likely to utilize such tools.