These attacks are carried out especially through methods such as sandwich transactions and have become a significant problem in the crypto market. Decentralized exchange aggregation platform ParaSwap is taking a new step towards solving this problem and launching an intent-based trading protocol.

This protocol aims to mitigate the effects of MEV attacks, which cost millions of dollars in daily crypto transactions.

“MEV” refers to validators who gain control of the ordering, inclusion and execution of on-chain transactions, using these capabilities to profit at the expense of users.

Over the past 30 days, popular MEV attacks, such as sandwich transactions, have earned attackers nearly $17 billion, according to data from data platform EigenPhi. This underlines how big a financial threat MEV attacks pose and the need to prevent such attacks.

Mounir Benchemled, founder of ParaSwap, stated that MEV causes great financial losses to users and this negatively affects the user experience. He also emphasized that MEV reduces the efficiency of DeFi (Decentralized Finance) protocols.

In this context, ParaSwap’s team began developing an intent-based trading model that would provide MEV protection. This model allows users to define their trading “intent” rather than exposing raw transactions to mempools.

This new artificial intelligence-supported protocol is designed to ensure safer trading transactions. ParaSwap’s Delta protocol offers a three-step transaction process.

The first stage is the pre-processing stage, where the user’s trading intent is identified. Intentions such as the price range set by the user are clarified at this stage. In the second stage, these intentions are put up for auction. AI agents try to recommend the most efficient execution strategy, taking into account factors such as liquidity and timing. In the final stage, the agent who wins the auction carries out the transaction through the Portikus Swap module. This process aims to take action in accordance with the user’s intention and minimize the risk of MEV abuse.

The DeFi boom in 2021 made MEV mining particularly profitable. Some protocols, particularly Uniswap, have been heavily targeted by bots, raising concerns about market abuse.

Other liquidity aggregation platforms have also developed various strategies to mitigate the effects of MEV attacks. For example, platforms like 0x aim to reduce attack opportunities by combining transactions into a single group, prioritizing transactions based on other criteria such as time priority and fair distribution of block space rather than just profit.

ParaSwap’s dashboard reports a total of more than $76 billion in transactions made through the protocol since 2019. The company’s future plans include offering more on-chain support and automated strategies, as well as increasing the system’s capacity with artificial intelligence-supported agents.

These innovations aim to increase security in the crypto market and provide more effective protection against MEV attacks. This initiative by ParaSwap can contribute to making the DeFi ecosystem more secure and efficient by reducing the negative effects of MEV attacks.