MEV Protection

DuckyDux is committed to providing a fair and secure trading environment. A key part of this commitment is our robust protection against Maximal Extractable Value (MEV).

What is MEV?

MEV refers to the potential profit that blockchain miners (or validators in Proof-of-Stake systems) can make by manipulating the order of transactions within a block. Common forms of MEV that can negatively impact traders include:

• Front-running: A bot sees your large trade in the public transaction pool (mempool) and places an order just before yours to profit from the price movement your trade will cause.
• Sandwich Attacks: A more advanced form of front-running where a bot places one order before your trade and another immediately after, profiting from the price “sandwich” they create around your transaction.

These practices can lead to worse execution prices (higher slippage) for your trades, with the value being extracted by MEV bots.

How DuckyDux Protects You

DuckyDux provides 100% MEV protected trades by bypassing the public mempool. Instead of broadcasting your transaction to everyone, we send it directly to block builders through a private channel.

This is achieved by grouping transactions into atomic bundles. These bundles are sent to builders who are incentivized to include them as-is, without reordering or allowing bots to insert their own transactions.

Side-Channel Attack Prevention

A unique feature of our MEV protection is the prevention of side-channel attacks. A common vulnerability occurs when a user must first submit an approve transaction to grant a smart contract permission to spend their tokens, followed by a swap transaction. This two-step process signals the user’s intent to trade, allowing MEV bots to front-run the subsequent swap.

DuckyDux solves this by allowing you to bundle the approve and swap transactions together in a single, atomic bundle. This ensures that both transactions are executed in the same block, in the correct order, without any opportunity for a bot to intervene.

This process ensures that:

• Your transaction is private: It is not visible to front-running bots scanning the public mempool.
• Your trade is executed as intended: The transaction order is preserved, preventing sandwich attacks and other manipulations.
• You get better prices: By avoiding MEV, you are protected from artificial slippage and get the best possible execution for your trade.

Technical Insight: Our backend services are responsible for constructing and submitting these protected transaction bundles. By leveraging direct relationships with block builders, we ensure your trades are shielded from the adversarial environment of the public mempool.