The recent uptick in sandwich attacks on solana, most notably against GMGN, is not merely a one-time occurrence. It’s a bright, harsh light on a deep, systemic rot that threatens to take the whole ecosystem down with it. We’re not just talking about tens of billions in real money stolen, consumer trust eroded, and the promise of decentralized finance (DeFi) being undermined. This is much more than a technical glitch, it’s a loss of confidence crisis.
Speed Came Before Security, Maybe?
After all, Solana’s core selling point has always been how speedy it is and how low its transaction costs are. That's what attracted developers and users alike. Or has this unyielding quest for performance been achieved at the cost of security? I think so. From the start, the Solana Foundation and our developer community have been tireless in challenging the limits of what’s possible. In doing so, they appear to have missed on several of the basics. It's like building a high-speed train without properly laying the tracks – eventually, something's going to derail.
GMGN is a prime example. This easy-to-learn-but-dangerous AI-powered trading app that claims to democratize trading has turned into a honeypot for attackers. The numbers don't lie: GMGN is disproportionately targeted, accounting for a massive chunk of sandwich attack profits relative to its trading volume. This is not merely the luck of the draw, but rather an intentional design defect. It would be like walking into a store that advertises the lowest prices on everything. Unless… all of a sudden, you’re a victim of pickpocketing as soon as you enter! That's the GMGN experience right now.
MEV: The Silent Killer of DeFi
Let's talk about MEV (Miner Extractable Value), or, in Solana's case, Maximum Extractable Value. It’s the elephant in the DeFi room that nobody likes to talk about. Sandwich attacks are the most common attack vector of MEV, but they’re one of the most aggressive forms of MEV as well. They do it by taking advantage of the unique characteristics of decentralized exchanges, which let you see all transactions before they’re executed. So now, attackers can easily spot your trade and place their own orders to take advantage of your slippage.
GMGN’s lack of fault is due to its weak MEV protection. They failed to build in sufficient safeguards to avoid these attacks. That’s not just a technical miss; it’s a violation of user trust. New users are entering the space under the assumption that it is safe, and they’re the ones getting preyed upon. It’s as stupid as leaving the front door wide open and then blaming the burglar when he steals your stuff.
Jupiter Exchange, which handles a significantly larger volume of trades on Solana, experiences far fewer sandwich attacks. Why? Because they've invested in security. Through measures such as slippage controls and route optimization, they do their part to reduce MEV extraction. Rather than perfect, maybe consider Jupiter a baseline-good place to begin.
This is where the "unexpected connection" comes in. It's like comparing a small town with a volunteer fire department to a major city with a professional one. Both are closing fires, but one is obviously better able to address the scale and complexity of the challenge.
Building Walls After the Flood? Or Not?
The Solana community is now debating whether to address the sandwich attack issue at the protocol level or leave it to individual app developers. This debate is not just exasperating, but perilous. Leaving security up to individual developers doesn’t work. It’s the equivalent of asking everyone to fortify their home against flood waters while turning a blind eye to the crumbling dam upstream!
It’s high-time for Solana to follow suit and take a more industry-friendly, proactive approach. We first need protocol-level solutions, which give all users a baseline level of security. Encrypted transaction submissions and private transaction relays might be viable solutions, but they must be rolled out swiftly and competently.
We cannot overstate the need for an entrepreneurial wave of developer education. Too many developers are developing on Solana without an understanding of MEV and its dangers. They have to be trained in secure coding practices and equipped with the tools necessary to help them safeguard their users.
I want to argue against the notion that we have to fix everything at the protocol level. Application developers have a responsibility. If you’re developing a DeFi application, security should be your primary concern. Move beyond an emphasis on features and functionality. Come along with us as we show you how to build a solid cybersecurity foundation from the ground up!
Ultimately, the GMGN sandwich attack crisis is more than just a scandal involving one app. It’s an issue that will determine the future of Solana itself. If we continue not to patch this vulnerability, it will only further continued user distrust and kill innovation. Security roadmap Solana aspires to be the leading platform for decentralized finance to flourish, but it must prioritize security. It has to do a far better job of protecting its users from being exploited. Like a half-starved giant, it must address its true Achilles heel, or else die, crushed by its own girth. It's time for Solana to step up and show us that it's committed to building a safe and secure ecosystem for everyone. This is not merely a technical concern, but an ethical and responsible mandate for the future of decentralized finance.
