The “unlucky” MEV bot took out an instant loan for $11.7 million, but only earned $20 with it. This was noted by analysts from Arkham Intelligence.
An MEV Bot just took out a $12 Million flashloan to make less than $20 in profit.
It sandwiched a user trying to swap $5K of SHFL to WETH using around 2% slippage.
Unlucky. pic.twitter.com/I1llVBN4fH
— Arkham (@ArkhamIntel) September 5, 2024
The automated software carried out a “sandwich attack” on a user who tried to exchange $5,000 worth of Shuffle (SHFL) tokens for “wrapped” ETH (WETH). The slippage on the trade was about 2%.
In total, the bot made 14 transactions using the DeFi protocols Balancer, Aave, and Uniswap. After completing the transactions and paying for gas, the profit was just over $20.
Users in the comments ironically noted that in the current market, even a MEV bot cannot earn more than $20.
$20 pure profit is more than most are making in this market
— John (@j0hn1x) September 5, 2024
A “sandwich attack” refers to a method of market manipulation. The attacker surrounds a user’s transaction with two of his own transactions, influencing the price of assets to make a profit. The transactions must be carried out in one block, which is often done by creating a so-called private mempool with the help of validators.
In July, the Solana Foundation removed a group of node operators from the delegation program for participating in “sandwich attacks.”
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Source: Cryptocurrency
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