The crypto industry looked at decentralized exchanges as the long-awaited solution to a very centralized crypto exchanges industry. DEXes, as they are popularly known, give the ultimate control back to the user. They rely on smart contracts to execute the trades, all without having to relinquish your cryptos to an exchange operator. However, according to a new report, DEXes are rife with trading bots that are manipulating the markets.
The report by researchers from Cornell University and several other universities attributed the bots to DEX design flaws. It comprehensively looks at all the ways in which trading bots have exploited these flaws and other inefficiencies to give some traders an edge over their peers.