Front-Running Attacks in Decentralized Exchanges

Description:
Malicious traders exploit transaction visibility in the mempool, placing higher gas fee transactions to execute before a targeted trade.
Cause:
Public transaction mempools allow bots to monitor and manipulate trade execution timing.
Solution:
Use private transaction pools or implement batch trade execution mechanisms to counteract front-running.

contract PrivateDEX {
    mapping(address => uint256) private pendingTrades;
    address private owner;

    constructor() {
        owner = msg.sender;
    }

    function submitTrade(uint256 amount) external {
        pendingTrades[msg.sender] = amount;
    }

    function executeTrade(address trader) external {
        require(msg.sender == owner, "Only owner can execute trades");
        uint256 tradeAmount = pendingTrades[trader];
        delete pendingTrades[trader];
        // Execute trade logic
    }
}

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