Impact

User harm in DeFi

Unexpected cost increase

Sandwich attacks amplify slippage and force users to exchange tokens at worse prices than they intended.

Gas-only losses

If a victim sets amountOutMin, an attack can push the execution price beyond the tolerance so the swap reverts and the user loses only the gas fee.

Erosion of trust from lack of transparency

Because the swap looks “normal” on the surface, users cannot tell why they received a worse price. This opacity degrades the user experience and trust.

Slower DeFi adoption (CEX regression)

When attacks are frequent, users perceive DeFi as unfair and untrustworthy. Many prioritize stability over transparency and return to CEXs, making it harder for the DeFi user base to grow. For newcomers in particular, “losing money on the first DeFi experience” is a major barrier to industry adoption.

Obstacle to RWA tokenization

The future of DeFi extends beyond crypto to real‑world assets (RWA) such as equities, real estate, bonds, and gold. But if the trading environment remains vulnerable, it will not meet investor‑protection requirements, keeping institutions and large players away. As a result, large‑scale RWA adoption and truly free, decentralized markets move further out of reach.