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Update slippage-protection.md #98

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4 changes: 2 additions & 2 deletions src/milestone_3/slippage-protection.md
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# Slippage Protection

Slippage is a very important issue in decentralized exchanges. Slippage simply means the difference between the price that you see on the screen when initialing a transaction and the actual price when the swap is executed. This difference appears because there's a short (and sometimes long, depending on network congestion and gas costs) delay between when you send a transaction and when it gets mined. In more technical terms, blockchain state changes every block and there's no guarantee that your transaction will be applied at a specific block.
Slippage is a very important issue in decentralized exchanges. Slippage simply means the difference between the price that you see on the screen when initializing a transaction and the actual price when the swap is executed. This difference appears because there's a short (and sometimes long, depending on network congestion and gas costs) delay between when you send a transaction and when it gets mined. In more technical terms, blockchain state changes every block and there's no guarantee that your transaction will be applied at a specific block.

Another important problem that slippage protection fixes is *sandwich attacks*–this is a common type of attack on decentralized exchange users. During sandwiching, attackers "wrap" your swap transactions in their two transactions: one goes before your transaction and the other goes after it. In the first transaction, an attacker modifies the state of a pool so that your swap becomes very unprofitable for you and somewhat profitable for the attacker. This is achieved by adjusting pool liquidity so that your trade happens at a lower price. In the second transaction, the attacker reestablishes pool liquidity and the price. As a result, you get much fewer tokens than expected due to manipulated prices, and the attacker gets some profit.

Expand Down Expand Up @@ -141,4 +141,4 @@ if (amount0 < params.amount0Min || amount1 < params.amount1Min)
revert SlippageCheckFailed(amount0, amount1);
```

That's it!
That's it!