GMGN's P Junior Classroom - Gas, Priority Fee, Slide Points MEV When trading on the chain, many fundamental concepts may determine the success or failure of your transaction. Nowadays, trading tools have lowered the operating threshold for everyone as much as possible, and most people are not familiar with on chain parameters. This article will take you through a little bit. 🔧 Some basic concepts: one ️⃣ Gas fee (GAS) Gas=transaction fee of blockchain ✅ Pay miners/validators to process your transactions ✅ Gas High → Transaction Priority Packaging ✅ Gas low → may be stuck in the queue 📌 Payment method: SOL transaction → Payment SOL ETH trading → Pay ETH Different chains have different gas mechanisms two ️⃣ Slippage Sliding point=deviation between expected price and actual transaction price 📉 📌 Reasons for slippage: • Insufficient market depth → Large order volume, but insufficient liquidity in the pool • Transaction Delay → Price Fluctuations from Submission to Execution MEV clip attack → robot manipulation price arbitrage 📌 Example: If you purchase ETH with 1000 USDC and expect a transaction price of 2000 USDC/ETH, you should receive 0.5 ETH. But the transaction price becomes 2050 USDC/ETH, and you only end up with 0.4878 ETH, with a sliding point of 2.5%. ✅ If you set the sliding point to 0.1%, the transaction will fail directly because the sliding point is insufficient. three ️⃣ How does the MEV Sandwich Attack clip you? 🤖 📌 Principle of Clamp Attack: one ️⃣ Front run trading → Robots buy ahead of you, pushing up prices two ️⃣ Your transaction execution → You can only trade at a higher price and bear the slippage loss three ️⃣ Back run trading → Robot sells immediately for arbitrage 📌 influence: ❌ Your buying price has been raised, and transaction costs have increased ❌ Robots arbitrage your slippage, making you buy expensive and sell cheap 📌 The clip on Solana vs Eth ETH → precise insertion of clip SOL → MEV robot batch submission of orders, widely casting nets to clamp people 📌 How to prevent pinching? ✅ Enable MEV protection to reduce the possibility of transactions being monitored four ️⃣ Priority Fee, also known as Bribery Priority fee=tip you give to miners/validators to make transactions execute faster 🚀 📌 component: • Base Fee → Network Basic Fee (Solana is a fixed fee, ETH is dynamic) • Priority Fee → Your additional tip increases transaction priority 📌 effect: ✅ Improve the priority of transaction packaging to make transactions go online faster ✅ In MEV competition, high priority fee transactions will be prioritized for execution 🏁 summarize The gas fee and slippage (including the slippage atmosphere you set and the impact of your purchase amount on the pool) and MEV clamp for on chain transactions jointly determine the final transaction cost. 🔥 Practical case: Is it safe for many people to use 50% sliding point and MEV protection on Solana to deal with dirt dogs? 🤔 📌 Most of the domestic dogs are traded through AMM one ️⃣ You use 1000 USDC to purchase a certain token, with a 50% slippage, which allows for extreme price transactions two ️⃣ MEV robots buy ahead and raise prices (within your sliding range) three ️⃣ Your transaction was executed at a high price, and you bought fewer tokens than expected four ️⃣ MEV robot immediately sells arbitrage to earn your sliding point loss ✅ If MEV prevention is effective: • Transactions will not be precisely sandwiched (robots cannot insert orders forward or backward) If the liquidity of the pool is sufficient and the purchase amount does not impact the price, then the transaction will be executed normally ⚠️ If it does not take effect: Solana does not have a private Mempool, MEV robots can still see your transactions and clip you If your amount hits the pool: • High slippage point=allows for extreme price changes, market fluctuations may lead to losses Low liquidity pool=greater trading impact, easy to fall into boxes 💀 📌 How to avoid getting caught? one ️⃣ Do not use high sliding points, set the sliding point range rationally two ️⃣ If AMM is used, enable anti MEV to reduce the risk of being monitored ❓ Is the high slip point the key to determining the success rate of a bulldozer? Most domestic dogs do not have such high short-term volatility, and the range of overflow slippage points does not have an additional success rate effect. More importantly, there are factors such as your priority fee, your trading nodes, and transaction routing pool selection. These can continuously improve your trading success rate. And sliding points are just a choice in some extreme situations. Most of the time, 10% -20% is enough to beat a dog. This part can be manually adjusted multiple times during dog fighting to control risks. For young players like P, it's all about fighting small for big. If the single purchase amount is not large, adjusting the decline point can avoid most of the situations where they are caught. 🌟 conclusion one ️⃣ When the trading venue is AMM (Raydium), the sliding point parameter determines the probability of you being caught by MEV two ️⃣ If you set a high sliding point, you need to evaluate: Is the gas fee high enough to prevent MEV robots from running away Is the purchase amount large enough to make MEV robots profitable Is the liquidity pool deep enough, otherwise it may fill up the sliding point range three ️⃣ By conducting small-scale transactions in batches and reducing slippage, the risk of being caught and losing small pools can be greatly reduced 🌊 How many sliding points? How to define small-scale transactions? 🎯 This can only be felt by hitting more dogs! Just like driving, manual transmission relies on practice! 🏎️💨