Exchange aggregator 1inch released a new tool called “Rabbithole” on Nov. 25, which the company says will protect traders from malicious “sandwich attacks.” The team announced the launch of the tool in a press release provided to Cointelegraph.

Rabbithole works by allowing users to submit transactions directly to Ethereum nodes, bypassing the mempool. In order to use it, users need to change the remote procedure call (RPC) endpoint in their encrypted wallet. After that, each exchange initiated through 1inch will be analyzed by the private tx routing algorithm developed by the 1inch team, and if there is a possibility of a sandwich attack, it will be sent directly to the validator.

According to the press release, the “sandwich attack” is an encrypted font run that involves three steps:

  1. Attackers scan the blockchain’s mempool until they find high-value transactions
  2. Submit transactions to front-run the victim’s purchases, and pay higher gas to ensure the attacker’s transaction is processed before the victim’s.This early trading pushes up the price of the tokens that are about to be purchased, causing victims to pay more
  3. After processing the victim’s transaction, the attacker submits a second transaction selling their coins, pocketing the difference

This type of attack is so named because it “sandwiches” the victim’s transaction between two transactions submitted by the attacker.

According to a TarLogic report titled “Tracking Ethereum Blockchain Cryptocurrency Attackers: Measuring Sandwich Attacks,” between May 2020 and April 2022, sandwich attacks resulted in the loss of more than 60,000 ether (ETH) — — worth over $72,000 at the time of publication.

The encryption R&D team Flashbots previously released a python library that allows users to submit transactions directly to nodes. However, this library can only be used in a developer environment. According to 1inch, Rabbithole is a library similar to Flashbots, but it also includes a user-friendly front end.

Rabbithole is the latest in a series of upgrades to the 1inch decentralized exchange (DEX) aggregator. In August 2021, the team launched an Ethereum layer 2 version on Optimism, and in November 2021 implemented a new mainnet router to optimize gas costs.