Tokenlon swap protection refers to Tokenlon's protection of each transaction from front-running and sandwich attacks.
How it works
In 2019, Tokenlon became the first decentralized exchange (DEX) to implement the Request for Quote (RFQ) market maker pricing model. Utilizing the RFQ pricing model for off-chain matching and on-chain settlement, Tokenlon achieves zero slippage for user transactions and eliminates any occurrence of Maximal Extractable Value (MEV).
To enhance the Swap Protection mechanism and extend protection to orders routed to Automated Market Makers (AMMs), on October 20, 2022, Tokenlon integrated third-party services to safeguard orders routed to AMMs, significantly reducing the probability of MEV attacks.
FAQs
1. When does MEV occur?
MEV may occur when user orders are routed to AMMs (e.g., Uniswap, Curve), introducing slippage protection due to AMM price algorithms. Orders quoted by Tokenlon's professional market makers do not experience MEV.
2. How can I distinguish if an order is routed to AMM or quoted by market makers?
Taking the imToken App as an example, after entering the token amount for quotation, if you see a "green shield" above the token quantity, it indicates the order is routed to AMM. If not, it means professional market makers quote the order.
3. What is the success rate of Tokenlon Swap Protection?
Since Tokenlon launched the swap protection function in October 2022, the success rate of flash swap protection has exceeded 99%.
We will do our best to protect every trade on Tokenlon, but only in a few extreme situations, such as when a block reorg occurs on the chain, causing the transaction to be accidentally broadcast to the public, and the transaction has a certain probability of being attacked.
4. How to enable Tokenlon Swap Protection?
Tokenlon Swap Protection will be on automatically when available, it depends on your wallet RPC environment.
- imToken App
If you don’t change the default wallet RPC setting, you will always get protection on Tokenlon on the Market page. - Tokenlon Web
Swap protection will be available when you connect your wallet via imToken or imKey on Tokenlon web.
If you use other wallets to connect on Tokenlon, for example, MetaMask, don’t worry you can still get protection by changing the wallet default RPC. Please follow the instructions below to enable third-party swap protection:
- Open the Blocknative website
- Click ‘Add to MetaMask’
- Confirm the changes on your wallet
- And you can see your wallet RPC change to Blocknative Transaction Boost
Note
Changing your wallet network will reset your Ethereum network default RPC settings, and make the swap protection unavailable, so you need to add the swap protection RPC again.