Shutter, a open-source protocol, has partnered with Gnosis to launch an innovative solution to combat crypto theft totaling $900 million. This new anti-front running system utilizes mempool encryption to safeguard end-user transactions from front running and sandwich attacks.
The integration of Shutter into the EVM-compatible Layer-1 Gnosis Chain aims to protect traders from malicious MEV attacks that can lead to significant financial losses and unfair advantages. This initiative is just one of many planned by Shutter to address MEV attacks within the Ethereum ecosystem.
The official launch of Shutter is scheduled for July 11, coinciding with the final day of the Ethereum Community Conference (EthCC). The pressing need for such measures is highlighted by the alarming statistics that reveal attackers stealing nearly $900 million annually from crypto trades on Ethereum through MEV tactics.
During MEV attacks, hackers exploit blockchain transactions to maximize their own profits at the expense of victims. A common tactic is the sandwich attack, where an attacker places transactions before and after a victim’s transaction to manipulate token prices, often resulting in significant losses for the victim.
Shutter’s integration with Gnosis Chain represents a significant step towards combating malicious MEV attacks through preventive measures. By directly integrating its encryption protocol into blockchain networks, Shutter aims to prevent manipulative practices and protect traders from monetary losses without the need for additional security measures.
The encrypted mempool also ensures real-time censorship is mitigated, maintaining transaction privacy until they are included in a block. This level of security not only protects traders but also upholds the core principles of public blockchains, such as openness, neutrality, and accessibility.
Through Shutter’s encryption approach, information symmetry is enhanced, leveling the playing field for all participants. This will provide greater confidence for both retail and institutional investors to enter the decentralized finance (DeFi) space, attracting a wider range of participants in the long run.