Tokenlon swap protection refers to Tokenlon's protection of each transaction from front-running and sandwich attack.
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.
- 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.
- 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 the order is quoted by professional market makers.
- How to enable Tokenlon Swap Protection?
Swap Protection is enabled by default and does not require manual activation. It remains in an open state by default to protect every transaction.
- How can I confirm if my order has received protection?
In the new version of imToken (2.14 and above) and Tokenlon web, we have added prompts for the Swap Protection. Users will see these prompts after completing a transaction.