News30 September 2022

MEV bot lost 1100 Ethers ($1.4 million) because of his negligence

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According to the MEV bot's story, he made 800 Ethers in one day on arbitrage trade. Still, he lost 1100 Ethers later because he made a mistake and put Ethers into the pair without liquidity.

As Bert Miller from Flashbots tweets, here's the MEV bot 0xbadc0defafcf6d4239bdf0b66da4d7bd36fcf05a, which had over 220K Ether transactions, and the story of its rise and fall:

There was a massive arbitrage transaction yesterday where one misguided soul tried to swap a cUSDC token for Uniswap v2 (cUSDC = USDC deposit into the Compound protocol). 

The most annoying thing is that there was no liquidity for this amount in this pair, so it turned $1.8M into $500 (link to the transaction).

MEV bot 0xbad saw this opportunity and profited as much as 800 Ethers. Yes, yes, the bot profited 800 Ethers, and still no :D. But as they say, Satoshi gave, Satoshi took. An hour later, he lost not just Vitalik Buterin's earned 800 Ethers but as many as 1100.

After all, when he took out a cryptocurrency loan on dydx, he did not protect his own contract from callfunction by unauthorized users. As a result, some miscreant stole 1100 Ethers by appraising all WETH transactions.

MEV bot 0xbad offered the exploiter a bounty of 20% of the funds, but that probably won't happen anymore.

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