Ethereum

Curve DAO Token

Token

Uniswap

<p>A Uniswap V3 user endured a costly blunder. The individual, presumably confusing the Curve DAO Token (CRV) for USD, initiated a liquidity pool transaction with severe consequences. The action, unfolding in a rapid 12-second window, resulted in a staggering loss exceeding $700,000.</p>
<h2 class="wp-block-heading" id="mev-bots-capitalize-on-human-error">MEV bots capitalize on human error</h2>
<p>In the aftermath of the transaction, MEV bots, which specialize in extracting Miner Extractable Value, swiftly mobilized. These bots exploit price discrepancies resulting from blockchain transactions. The most adept bot secured a modest profit, overshadowed by the immense ‘priority fee’ it paid to validators. This fee, colloquially termed a ‘bribe’, ensures that a bot’s transaction is processed ahead of competing transactions. This particular incident saw the winning bot outlay a hefty $527,000 to supersede its rivals.</p>
<p>The Uniswap platform, which operates on the Ethereum blockchain, allows users to swap various cryptocurrencies without the need for a centralized party.&nbsp; The user involved in this recent incident <a href="https://etherscan.io/tx/0x1114432ef38437dde663aeb868f553e0ec0ca973120e472687957223efeda331" rel="noopener noreferrer nofollow" target="_blank">added </a>approximately $1.56 million in wrapped Bitcoin (WBTC) to a Uniswap liquidity pool. Instead of the expected USD equivalent, they<a href="https://etherscan.io/tx/0xa1988ed7ee2bb320bf0da8bc36156bf8b4a941c646d2fad46b6a2377cad7346d" rel="noopener noreferrer nofollow" target="_blank"> received</a> 1.56 million CRV tokens. At the time, the value of these tokens was markedly lower, around $850,000, leading to an immediate and substantial loss.</p>
<p>Arkham, a blockchain analytics firm, offered insights into the event but withheld sympathy, tersely remarking, “Tough luck.” Such errors, often dubbed “fat finger” mistakes, have become increasingly common in the cryptosphere.&nbsp;</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">MEV Bots instantly rushed the pool to swap CRV for valuable WBTC – with the first bot making off with $1.36M in WBTC for only $730K in CRV.<br><br>But the bot only netted ~$260, paying $527K of ETH to the validator just to make this transaction.<br><br>Tough luck! <a href="https://t.co/3JbVwhwYoj" rel="noopener noreferrer nofollow" target="_blank">pic.twitter.com/3JbVwhwYoj</a></p>— Arkham (@ArkhamIntel) <a href="https://twitter.com/ArkhamIntel/status/1720798847763394848?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">November 4, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>Similarly, just last month, another user erroneously swapped about $130,000 in a stablecoin USDR, which <a href="https://twitter.com/rektfencer/status/1712120778429194305/photo/1" rel="noopener noreferrer nofollow" target="_blank">unfortunately</a> turned out to be valueless.</p>

A costly mistake on Uniswap: User’s $700,000 loss leads to MEV Bot’s minimal gain

Table of Contents

Cryptopolitan_News

Autres articles publiés le 5 nov. 2023

Analyst Explains Why Kaspa Is ‘Way Better than Bitcoin’ and the Reasons He Is ‘Super Bullish’ on KAS

Azteco's Bitcoin Voucher Giveaway: How Blockchain Jungle Attendees Will All Receive Bitcoin (5 Nov)

Fake Ledger Live App on Microsoft Store Results in $600,000 BTC Theft

Elon Musk Unveils AI Conversational Assistant ‘Grok,’ Claims Superiority Over ChatGPT

Major U.S. Banks Grapple with Deposit Disruptions Amid Federal Reserve Payment System Outage

Pro-XRP Lawyer Reveals Why A $20 Million Settlement Is A Total Victory For Ripple

Join our free newsletter for daily crypto updates!