Gate News, March 20 — DEX aggregation protocol 0x released a report stating that some propAMMs on the Base network are engaging in systemic quote manipulation. The research found that these operators use Base’s Flashblock architecture to publish highly attractive prices in the last approximately 200 milliseconds of a block (the final Flashblock) to attract aggregator routing, but immediately adjust prices at the start of the next block. Such behavior often results in traders facing an additional 5 to 10 basis points of loss. With a monthly trading volume of $1 billion, a single liquidity source could cause users to lose an extra $500,000 per month. Additionally, the report pointed out that some operators exploit delays between quoting and settlement to maliciously widen spreads or manipulate LP rewards through “phantom liquidity”—depositing large amounts of liquidity before a block ends and quickly withdrawing at the start of the next block—causing aggregators to lead users into higher slippage paths due to incorrect depth data. 0x stated that it currently integrates five propAMMs on the Base network but will continuously monitor execution quality and cut off any violating liquidity sources to protect users.
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