Just-In-Time Liquidity Attacks
A MEV strategy where liquidity is added and removed around a large trade to extract profits at the expense of regular providers.
What is Just-In-Time Liquidity Attacks?
Just-In-Time (JIT) liquidity attacks involve spotting a pending swap in the mempool, minting concentrated liquidity in a tight range before it, and burning it after, capturing fees while avoiding impermanent loss. On Uniswap v3, this generated $750 billion in liquidity event volume by 2023.
Primarily executed by a few bots in a “whales’ game,” JIT crowds out passive LPs when order volume isn’t elastic, leading to a tragedy of the commons.
Strategic analysis shows JIT can combine with sandwich attacks, extracting up to 2% per trade, but enhances efficiency for uninformed orders.
Related Terms
Bitcoin Core
Bitcoin Core is the primary software client for running a Bitcoin full node, validating transactions, and contributing to the network’s proof-of-work consensus.
Compound
A decentralized finance (DeFi) protocol that enables lending and borrowing of digital assets through algorithmically managed interest rate markets.
Leverage Ratio (MSTR)
A measure of debt relative to assets or equity, in Strategy's case (Debt + Preferred)/Market Cap.
Hard Fork of a Blockchain
A permanent split in a blockchain’s history, creating two separate chains due to incompatible consensus rule changes.
Gas Limit of a Block
The maximum total gas allowed for all transactions included in an Ethereum block.
Jito
A Solana-based protocol providing MEV infrastructure for validators and non-custodial liquid staking via JitoSOL, distributing rewards from transaction ordering and stake delegation.