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21/08/24
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Revived MEV Bot Enhances Sandwich Attack Tactics in DeFi
A well-known maximal extractable value (MEV) bot has resurfaced, boasting upgraded capabilities to execute increasingly sophisticated sandwich attacks. This bot, operating under the handle “jaredfromsubway.eth,” previously garnered millions through arbitrage and sandwich trading strategies early in 2023, and it has now been improved to enhance its operational effectiveness.
Recent observations from a MEV tracking platform highlight the emergence of a new MEV contract. The upgraded tactics involve multi-layered sandwich attacks on decentralized finance (DeFi) protocols. This technique allows the bot to schedule its transaction before and after a target transaction, manipulating market prices to its advantage. Reports indicate that in the past two weeks, this bot has employed various on-chain trading methods to maximize its profit margins.
The bot’s operational blueprint involves exploiting vulnerabilities within DeFi protocols, specifically by executing multiple transactions within the same block to alter exchange rates in a Uniswap V3 pool. This leads to profits accrued by the bot at the expense of unsuspecting users. Sophisticated tactics such as adjusting liquidity within decentralized exchange (DEX) pools are now part of its strategy, complicating efforts to analyze and track the effectiveness of its trading schemes.
In terms of profitability, the initial version of the bot is noted to have distributed approximately $2.2 million to other automated systems or traders within a two-week period starting August 1. However, its activity saw a marked decline, with engagement halting entirely by August 14. According to analytical data, the overall volume of sandwich attacks has surged to over $17 billion in recent days, indicating a prevalent issue within the DeFi space.
The bot’s naming pays homage to Jared Fogle, a former Subway spokesperson who became infamous after his legal troubles in 2015, which included serious criminal convictions. This connection serves as an ironic reminder of the bot’s contentious methods in the evolving digital finance landscape.
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