MEV Bot Earned $34 Million In Three Months Via Sandwich Attacks
- In the previous three months, an MEV bot managed by a pseudonymous crypto person gained millions of dollars in arbitrage and sandwich attacks.
- This MEV bot rapidly gained attention, surpassing other MEV bots used for high-frequency trading algorithms based on blockchain.
In under three months, an MEV bot operated by jaredfromsubway.eth raised $34 million. According to a study by MEV monitoring site EigenPhi, an MEV bot managed by a person named after an imprisoned felon has gained $34 million in the last three months via arbitrage and sandwich attacks.
The bot was established in February by Jaredfromsubway.eth, a reference to the former spokesman for sandwich brand Subway who was sentenced to 15 years in prison for sex offenses. It soon gained popularity by sandwiching other cryptocurrency users and beating competitor MEV bots, which are blockchain-based high-frequency trading algorithms.
According to EigenPhi, the Jaredfromsubway.eth bot launched over 238,000 assaults on almost 106,000 people. The bot brought in $40 million in income. It earned $34 million in net profits while paying $6 million in transaction fees.
EigenPhi claims that as the bot becomes more active, its transactions can now be found in more than 60% of Ethereum blocks.
This week, a crypto engineer using the alias Nox said on Twitter:
“Their success can be attributed to skill, strategy, and tech. Jared’s bot identifies more MEV opportunities and executes transactions faster than competitors.”
A sandwich attack occurs when a quick crypto user notices a transaction on the blockchain that is awaiting processing. It then blends this transaction with two of its own, one before and one after the transaction. It forwards this packet to a blockchain validator, who executes the transaction in exchange for a fee. These two deals are meant to manipulate the market in a manner that makes the initial trade less lucrative and consequently boosts the attacker’s own profit.
The bot’s success seems to be pushing its rivals to the sidelines. In Flashbots Discord, the owner of an MEV bot called Yannick said that jaredfromsubway.eth is prepared to give validators a bigger share of the money from the assaults.
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