MEV bots earn $476,000 through large stablecoin swaps

MEV bots earn $476,000 through large stablecoin swaps

Two MEV trading bots earned significant profits today, focusing on significant stablecoin trades according to explained by Robert Miller, product lead at Flashbots.

MEV, which is the term used to describe maximum extractable value is the name given to the extraction of value through the reordering or censoring of blocks. 

Most often, those who incentivize miners (or validators) are arbitrageur traders who pay miners for excessive costs. 

The intention is typically to advance a specific transaction to gain advantage of an opportunity.

In these instances, trading bots were utilized to take advantage of price changes after massive stablecoin trades. 

Bots also paid large amounts to miners to ensure that their transactions were completed in the most appropriate time.

MEV bots earn $476,000 through large stablecoin swaps

The first trade

The bot’s first target was an exchange for stablecoins worth $24 million. 

It made use of the arbitrage opportunities that resulted from the huge stablecoin exchange to make trades between ether and the stablecoins involved.

The data from Etherscan indicates that a trade was started at 7:57 am UTC on Thursday, in block 14447742.

The trade was initiated by a trader trading 24.54 millions USDC to 22.94 millions USDT. 

The difference of around $1.5 million in the difference between what the trader had started with and what they got is referred to as slippage, the value of the transaction decreased significantly when it was completed.

Bot used this information to benefit them and planned their transaction for the next block. 

Information from Etherscan indicates that the bot could earn an estimated 275 Ether ($832,000) by converting the ether for USDC and later for USDT.

It also paid the bulk of the profits to block manufacturer Ethermine and made a net profits in the amount of 10 Ethereum ($30,000).

The second trade

The second bot had more results, having found the 164 ETH ($492,000) chance to arbitrage. 

Like in the earlier instance the procedure involved swaps between identical trading pairs.

Of the 164 Ethereum snatched from the arbitrage chance, the bot was only required to pay 16.44 ETC ($49,000) payment to F2Pool which is the mining company responsible for putting its transaction into the right block. 

This bot made 150 ETH ($446,000) revenue.

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