EigenPhi: Performance Appraisal of Jaredfromsubway.eth
CMC Research

EigenPhi: Performance Appraisal of Jaredfromsubway.eth

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Created 9mo ago, last updated 9mo ago

In less than 3 months, Jaredfromsubway.eth reaped over $40.6 million in revenue with a profit of $6.3 million.

EigenPhi: Performance Appraisal of Jaredfromsubway.eth

Table of Contents

Key Takeaways

1. On February 27th, 2023, the creators of the sandwich bot brought it to life. On April 17th, the bot gained public attention and sparked significant discussions. During that time, more than 60% of blocks contained transactions from the bot, leading to an increase in gas fees on Ethereum for the week.

2. The bot did not generate significant profits until April 17th, when a popular trend of trading altcoin tokens emerged. In just one week, the bot made a profit of $2.7 million. It has profited $6.3 million as of May 8th since launching.

3. As of April 25th, the sandwich bot has used around 7082 tokens for sandwich attacks, with most of them being altcoins. The bot's ability to hold such a massive amount of tokens in its account is one of the reasons why it outperforms its competitors in sandwich attacks.

4. The bot is not limited to performing sandwich attacks; it also holds onto some of the altcoins in the back-run transactions when their prices are increasing. By holding onto PEPE, for example, the bot is able to generate even more profits.

5. To ensure that the builder includes its transactions in the block, the bot prefers to pay higher gas fees. Additionally, the bot does not transfer extra tips to the builders. There does not appear to be any clear bias in the selection of builders by the bot; it primarily focuses on the MEV searcher side.

Jared’s Birth Certificate

How Often Does Jared Cook Sandwiches?

We analyzed the bot's transaction frequency by calculating the number of blocks that included them and comparing it to the total number of blocks on Ethereum each day. Through this analysis, we discovered that during the week of April 17th, the bot's transactions were present in over 60% of Ethereum's blocks. This finding explains why EigenPhi frequently mentions the bot in our MEV live stream.

This is a summary of the transactions initiated by this bot. So far, the bot has initiated 254K transactions, with EigenPhi identifying 98.31% of them as front and back runs. Only 0.16% of the transactions involve arbitrage, while the rest are simply buying and selling tokens.

The daily trend analysis clearly shows that the bot primarily engages in sandwich attacks.

How Many Profits Jared’s Sandwich Attacks Generate by Ripping Off Retail Traders?

We conducted a PNL analysis based on the sandwich transactions we identified to determine the bot's profitability. It's evident that executing sandwich transactions requires a high gas fee every day. The profit generated by the bot, after deducting the cost, is represented by the orange bars on the graph. Prior to April 17th, the bot only made a profit of $460K in nearly two months. However, after April 17th, there was a significant increase in revenue and profit, with the bot earning $2.7 million in just one week.

This bot has initiated a total of 238K attacks since its launch, with more than 106K victims suffering from the attack. The bot has generated total revenue of $40.65 million from the victims, paid around $34.35 million in gas fees, and made a final profit of $6.3 million. Please note that this PNL calculation only takes into account the revenue generated from front and back runs. The profit and loss from holding altcoins are not factored into this chart.

Jared’s Cost Revenue Ratio (CRR) is not too much different from the 2nd sandwich bot recently. Here is the chart comparing Jared’s CRR with the 2nd bot.

How Many Recipes/Altcoins Jared Uses for His Sandwiches?

We analyzed how this bot has gained a lot of attention recently and outperformed other sandwich and arbitrage bots. One of the key strategies is employing many altcoins.

The bot's account holds a significantly larger amount of tokens compared to the second-ranked sandwich bot.

This gives the bot a considerable advantage in terms of finding sandwich opportunities. The more tokens a bot holds, the more opportunities it has to execute sandwich transactions. At the highest point, Jared’s bot holds more than 800 different kinds of tokens.

Why Do Builders Include Transactions From Jared?

Our analysis found no tips for validators, which means that this bot did not offer any additional incentive to include its transactions, at least with no clue on-chain. The bot relied solely on gas fees to secure its transaction inclusion in blocks.

Gas Fee Paid by Jared as to the Total Gas Fee on Ethereum

This bot's gas payment constitutes a certain proportion of the total gas used on the blockchain.

Distribution of Gas Fee Paid Per Transaction

Related Builders Analysis

We also discover that there is no clear bias from the builders. The table below shows the distribution of the blocks including Jared among the top 20 builders.

To Be Continued

There is much more to discover about jaredfromsubway.eth, such as:

  • Where/which pools are his favorite trading venue for front-running?
  • Which tokens are his top selections when making sandwiches?
  • What are Jared’s special cooking skills that make $6.3 million profit for him?

If you want to find out the answers to these questions, please stay tuned for our future analysis!

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