A backrun is an MEV strategy where a bot places a transaction immediately after a target transaction in the same block to profit from the state change it creates. It's a race to be second, not first.
Why it matters on AGON
On AGON, you won't get backrun placing a bet on /markets. Our order book and settlement logic are designed to shield bettors from direct MEV extraction on wagers.
However, backrunning is a fundamental reality of the on-chain environment where AGON operates. When you bridge assets or swap tokens for USDC to fund your account, those transactions hit public mempools on Base or other networks. If your swap creates a clear arbitrage opportunity on a DEX, a searcher bot will likely backrun it. This isn't a flaw; it's a feature of transparent, adversarial blockchains that AGON's architecture abstracts away from the core user experience.
How to apply
Backrunning is a game for bots, not humans. The strategy is to monitor the public mempool for transactions that create predictable, profitable state changes.
The classic example is DEX arbitrage. A user submits a large swap on Uniswap, buying ETH with USDC. This pushes the ETH price up in that specific pool. A backrunning bot sees this, calculates the new price, and immediately places a transaction to sell ETH at the higher price in the same pool or arbitrage it against another venue. The bot pays a high gas fee (a "tip") to the block builder to ensure its transaction is included directly after the target.
The rule is simple: if your on-chain action creates free alpha, the fastest bot wins it.
See also
sandwich-attack · frontrun · jit-liquidity · public-mempool
Trading prediction markets involves risk. Not financial advice.