Flipside Crypto analysts decided to investigate the reason for the large number of garbage transactions on the Polygon network. The reason is in the arbitrage bots, they “spam” transactions in order to increase profits.
As it turned out, the arbitrage bots in the Polygon solution were able to increase 14 ETH to 218.5 ETH. To do this, they filled blocks with garbage transactions for 120 days in a row to prevent competitors from making a profit through arbitrage on decentralized sites. Considering that the cost of “spam” was approximately $ 1,000 per day, the bot owners made a significant profit.
Currently, 218.5 ETH is worth $ 824,000. Thus, arbitrage bots were earning about $ 6,800 per day. At the same time, the number of “trading” transactions generated by bots ranged from 2,000 to 4,000.
At the beginning of the month, the developers of the Polygon solution increased transaction fees by 30 times to combat garbage transactions. And it helped – the number of transactions in the solution network decreased. However, not completely – arbitrage bots still continue to work and “spam”.
Between May and September, the Polygon network processed an average of 4 to 6 million transactions per day. Of this number, approximately 2 million transactions per day were junk. After the increase in fees, the number of junk transactions dropped to 500,000 per day. That is, bot owners spend $ 5,000 a day to keep the bots running.
Recall that the popularity of decentralized sites continues to grow. So, last week the volume of assets blocked in decentralized applications exceeded $ 200 billion.
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