Validator Address Drained Mev Bots For $25m Blacklisted By Tether
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MEV-help exploits large MEV exploits by sandwiching transactions in between
The MEV-help hand-off to outsmart the MEV bots attempting to execute a sandwich exchange. Sandwiching happens when one request is put preceding the exchange and another following it. Essentially, the trader will simultaneously front-run and back-run, sandwiching the initial pending transaction in between.It was the largest MEV exploit to date when the rouge validator address swooped in to back-run the MEV's transaction, resulting in losses of nearly $25 million in various digital assets. The address has already been flagged by Etherscan as suspicious for its role in the exploit.
The community criticised the censorship strategy behind the blacklisting of the rouge validator address. Arthur, a Kraken crypto exchange engineer, called the blacklisting "bullshit." He said that MEV bots also take advantage of traders and that the sandwich trade they were trying to make was just as bad as taking their money.
Tether's blacklisting of DeFi is 'bad precedent,' says Bitcoin sleuth
MMEV bots profit by arbitrage
By making use of information about upcoming transactions, MEV bots increase their profits. This is typically accomplished through the use of arbitrage, or taking advantage of price differences between exchanges. When an MEV bot learns that another person is going to buy a coin, it puts itself in a position to take advantage of the slight price increase that its bid will probably cause. Front-running the exchange, the bot skirts the line and purchases a little less. After that, the bot moves ahead of the trade and purchases the cryptocurrency at a lower price.