A Uniswap V3 user lost over $700,000 in just 12 seconds due to an unfortunate mistake and the quick action of MEV bots. The user appears to have entered an incorrect value while trying to create a liquidity pool, resulting in a significant loss.
User adds $1.56 million worth of Wrapped Bitcoin to liquidity pool Curve DAO Token (CRV) He seems to have confused the value of the altcoin with USD. As a result, by giving $1.56 million worth of BTC, this user received 1.56 million CRV, which was worth only $850,000 in those minutes.
So what are the MEV boats causing the loss?
MEV boats, namely Maximal Extractable Value boats, Ethereum It can be defined as software tools developed to follow the blockchain, identify profitable opportunities and automatically perform these transactions for their users. decentralized cryptocurrency They make a profit by first making their own transactions in the transactions on the stock exchanges, that is, by sandwiching in crypto parlance.
In this case, MEV bots quickly stepped in to take advantage of the arbitrage opportunity presented by the user’s error. But the most successful bot made a total profit of just $260 after paying $527,000 in “bribes” to validators to “get ahead” of other bots and execute its transaction first.
*This is not investment advice.
For exclusive news, analysis and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android And iOS Start live price monitoring now by downloading our applications!