Don't Let MEV Slip: The Costs of Swapping on the Uniswap Protocol

arXiv:2309.13648v2 Announce Type: replace
Abstract: We present the first in-depth empirical characterization of the costs of trading on a decentralized exchange (DEX). Using quoted prices from the Uniswap Labs interface for two pools -- USDC-ETH (5bps) and PEPE-ETH (30bps) -- we evaluate the efficiency of trading on DEXs. Our main tool is slippage -- the difference between the realized execution price of a trade, and its quoted price -- which we breakdown into its benign and adversarial components. We also …

arxiv cs.cr decentralized depth dex don efficiency eth exchange interface labs mev protocol trading uniswap usdc