1inch Network introduced the RabbitHole feature

Representatives of the decentralized finance platform 1inch Network announced that they have a RabbitHole function that will help users protect themselves from “sandwich attacks”. The new functionality will allow crypto enthusiasts using the MetaMask wallet to avoid unpleasant situations in which they could become victims of such attacks.

So-called “sandwich attacks” are a way to get the maximum possible extraction from a block in the decentralized finance (DeFi) industry. It, as you might guess from the name, closes users with two transaction requests before and after making their exchange.

Such a move resembles a “sandwich”, covering the victim from above and below, which is why the manipulation received such a term. Thus, the victim, due to special scanning bots, is forced to sell more coins than originally expected, after which the attacker goes to the market and fixes additional profit on a profitable stage.

Such actions in the community of crypto traders are considered highly unethical and do not inspire approval among conscientious cryptocurrency market enthusiasts. For the first time, such a method of dishonest earnings, according to some assumptions, appeared on the Bancor site on February 27, 2018. This method has been widely used in the future. For the unfinished year 2022, the attackers managed to earn more than $800,000,000 in this way.

Using the maximum extractable value (MEV) to get the highest gas fee has also been seen by some miners and validators.

1inch Network came up with an interesting solution in order to eradicate such a problem and stop attackers from making money. To implement RabbitHole, the project administrators launched an algorithm that works on the principles of a proxy server between MetaMask and Ethereum validators. Exchange transactions skip the mempool stage, which involves storing coins for exchange in a dedicated place. Thus, coins acquire a simpler character of exchange. Blockchain developers have achieved this by combining with products from Flashbots, BioXroute, Eden and Manifold.

At the moment, RabbitHole will be at the testing stage in the public domain. After the developers collect enough feedback from MetaMask users, they can improve the way they protect against “sandwich attacks” and take RabbitHole to the next stage. After that, 1inch Network wants to monetize their solution and will charge for the use of a protective system. Thus, users will be able to purchase a protective algorithm in order not to lose more money later.

Earlier, representatives of 1inch Networkd announced the launch of the fifth version of their protocol. Compared to version 4, transferring coins to 1inch Router v5 has become about 5% cheaper.

As for other news from the decentralized finance (DeFi) industry, we talked about the increased interest of investors in the DeFi sector after the fall of the American crypto exchange FTX. If you missed this material, you can follow the link and read the news . We also talked about the sharp jump in the cost of the Nest DeFi protocol, which you can read about here .