1inch Network has introduced the RabbitHole feature to protect MetaMask wallet users from “sandwich attacks,” one of the most common ways to extract MEVs in DeFi.
Manipulations to obtain additional income through advanced transactions are not formally illegal actions. In the community, rather, they are considered unethical.
To extract additional income, the attacker scans mempools using special bot programs to find large pending swap transactions on decentralized platforms.
Then he initiates two transactions: before and after the exchange planned by the victim, which forms a “sandwich.” As a result of the first, the bot operator “pumps up” the price of the coins bought by the victim. He then earns income by realizing the assets.