Shutter and Gnosis Team Up to Combat $900M Crypto Theft with New Solution
Shutter, an open-source protocol, has joined forces with Gnosis to introduce an innovative anti-front running solution aimed at combating crypto theft. This groundbreaking solution utilizes mempool encryption to safeguard end-user transactions from front running and sandwich attacks, particularly in the Ethereum ecosystem.
The integration of Shutter into the EVM-compatible Layer-1 Gnosis Chain marks a significant milestone in the fight against malicious maximal extractable value (MEV) attacks. These attacks have been responsible for nearly $900 million in annual crypto theft on Ethereum, as per a recent press release.
One of the most common tactics employed in MEV attacks is the sandwich attack, where attackers strategically place their transactions before and after a victim’s transaction to manipulate prices and maximize profits. This not only results in financial losses for victims but also erodes trust in the system.
Shutter’s integration with Gnosis Chain is described as a “deep integration” that offers a proactive solution to combat MEV attacks. By encrypting transactions directly within blockchain networks, Shutter prevents manipulative practices and ensures that block producers commit to the inclusion and order of transactions in an encrypted state, making it nearly impossible to front run or censor.
This move not only protects traders from monetary losses but also promotes market efficiency and trust in the system. By increasing information symmetry through Shutter’s encryption approach, the playing field is leveled for both retail and institutional investors in the DeFi space. This, in turn, is expected to attract a broader range of participants and enhance the integrity of public blockchains in the long run.
The release of Shutter is scheduled for July 11, coinciding with the Ethereum Community Conference (EthCC). This launch represents just one of many initiatives planned by Shutter to combat malicious MEV attacks and promote a more secure and transparent crypto ecosystem.
