MEV bot operated by an individual using the pseudonym Jaredfromsubway.eth It has been revealed that a new arbitration and sandwich attack is being deployed that is generating millions of dollars in revenue. Ethereum
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According to a report from the MEV tracking site, as of August 14, Jared, named after a former Subway sandwich chain spokesman and convicted sex offender, appears to no longer be using his previous contract address. EigenPhi.
“That said, that doesn’t mean Jared has stopped making sandwiches. Over the past two weeks, we’ve discovered a new MEV contract that’s been rife with all sorts of new on-chain transaction squeeze methods,” the report reads.
According to EigenPhi’s analysis, Jared’s New address It was created with the same public/private key pair (also known as an externally owned account) as his original bot, which caught the attention of MEV traders by generating millions of dollars worth of ETH in just 3 months after its launch in 2023.
MEV, or Maximum Extractable Value, is the process of reordering transactions to make as much money as possible when building a block. Since the order of transactions is one of the most important factors in determining the price that users pay when trading (typically on decentralized exchanges like Uniswap), both good and bad actors will try to reorder or exclude certain transactions.
According to EigenPhi’s Dune dashboard, Jared’s new contact address processed over 85,000 transactions, generating around 765 ETH (around $2 million in today’s value).
EigenPhi also discovered that Jared was executing increasingly complex sandwich attacks, including five- and seven-stage sandwich attacks that leveraged arbitration created by Jared’s MEV bot to fool multiple victims at once.
The simplest form of a MEV sandwich attack is to front-run and back-run regular users’ transactions simultaneously. This ensures better pricing for attackers like Jared, but makes price execution difficult for regular users.
Because there is often slippage in cryptocurrency trading, Jared can drive up the price, force someone to buy at an inflated price, and then immediately sell behind the victim’s back for a profit.
“The above examples are just the tip of the iceberg. Jared 2.0 adds liquidity trading to the front and/or center, and removes liquidity trading to the back. The combinations can be varied, and multiple transactions can be placed in between, making them susceptible to sandwich attacks,” EigenPhi wrote.
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