According to CoinGecko, in 2022, approximately 173,283 cryptocurrency users fell victim to sandwich attacks, a form of MEV exploitation, resulting in collective losses of around $129.9 million. That’s why knowing what MEV is and how you can protect yourself when using Killshot Bot.
Here are the topics we’ll be covering today,
- What is MEV
- Understanding MEV in practice
- How the MEV protection of Killshot works
- How to enable it
- Why this matters
With that said, let’s start with going over what MEV is.
What is MEV?
MEV (Maximal Extractable Value) protection in a trading bot involves techniques to reduce risks associated with manipulative practices in blockchain systems, particularly within decentralized finance platforms.
It refers to the potential value that miners, validators, or other entities involved in block creation can gain by altering the order of transactions, including inserting or excluding certain ones.
Understanding MEV in Practice
Knowing how MEV works is very important. That’s why here are some things that you need to know.
- Common Exploitation Methods:some text
- Front-Running: Observing a pending trade and placing a similar transaction with higher gas fees to execute it first.
- Back-Running: Making a transaction right after a target trade to benefit from its price effects.
- Sandwich Attacks: Placing a buy order before and a sell order after another transaction to manipulate pricing.
- Impact on Bots:some text
- Increased transaction costs and reduced profitability.
- Unsuccessful transactions that waste gas fees.
Nevertheless, when it comes to trading, choosing the right bot is very important, which is why the Killshot bot offers its users MEV protection.
How the MEV Protection of Killshot Works
MEV Protection in the Killshot Bot is a feature that helps secure transactions against manipulation on the Solana blockchain. It ensures that trades are processed in a fair and protected manner by routing them through specialized slots designed to guard against miner extractable value exploitation.
How It Works
- When MEV Protection is Enabled:some text
- The bot uses JITO as the processor, combined with custom security solutions.
- Gas settings are adjusted dynamically, allocating validator tips to prioritize transactions for reliable execution.
- This approach adds a layer of protection, though it might slightly reduce transaction speed.
- When MEV Protection is Disabled:some text
- Transactions are processed via NextBlock, which offers faster execution.
- This mode does not include the extra layer of MEV security.
Key Features and Considerations
- Validator Tips: These tips help prioritize transactions within competitive JITO slots. In cases of increasing competition, adjusting the gas settings may be necessary.
- Transaction Timeouts: If delays occur, raising gas settings can improve performance.
- Flexibility: Users can choose between prioritizing security or speed, depending on their needs for the specific trade.
By providing options for both protected and faster transactions, the Killshot Bot allows users to manage trades with clarity and assurance, regardless of market conditions.
How to Enable It
Some of the new traders might not know how to enable MEV protection. Here are the steps that you need to know.
- Open the Telegram app and tap on the Killshot bot.
- Enter “/settings” and press send.
- Tap on the “MEV Protection” button.
- Now, tap on the “MEV Protect Buy” button and the “MEV Protect Sell” button.
- After that, tap on the “Tip” button.
- Enter the amount of SOL you want to set as a tip and press send.
- Now, the MEV protection is active.
Why This Matters
By implementing methods to mitigate these risks, trading bots operate with greater stability and efficiency, avoiding many of the manipulative practices that would otherwise harm their performance. Such safeguards are essential for smooth operations in competitive environments.
That’s why the KIllshot bot is one of the best MEV protection tools for crypto traders. Use it to trade Solana meme coins without any worries.
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