{"id":52162,"date":"2023-06-15T08:43:22","date_gmt":"2023-06-15T12:43:22","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=52162"},"modified":"2023-06-15T08:43:26","modified_gmt":"2023-06-15T12:43:26","slug":"crypto-trading-bot-takes-out-200m-flash-loan","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/crypto-trading-bot-takes-out-200m-flash-loan\/","title":{"rendered":"Crypto Trading Bot Takes Out $200M Flash Loan"},"content":{"rendered":"\n

A crypto trading bot programmed to execute arbitrage trades made numerous complex movements within the Ethereum blockchain<\/a>, including taking out a $200 million flash loan to earn a meager $3.24.\u00a0<\/p>\n\n\n\n

\"Crypto
Crypto Trading Bot Takes Out $200M Flash Loan<\/figcaption><\/figure>\n\n\n\n

On June 14, Arkham Intelligence, a blockchain analysis firm, provided a synopsis of the bot's movements. According to the company, the transaction was carried out by an arbitrage algorithm utilizing flash loans.<\/p>\n\n\n\n

\n

This morning, $200M worth of DAI was minted and burned by MakerDAO in the same block.

It was part of an arbitrage transaction with a net profit of… $3?

Why did this happen – and what does this mean?

Details below \ud83d\udc47 pic.twitter.com\/wWLZeC8All\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a><\/p>— Arkham (@arkham) June 14, 2023<\/use><\/svg><\/span><\/a><\/blockquote>

The analysis firm explained that MakerDAO's “DssFlash” contract permits zero-fee borrowing on any quantity of DAI, up to a maximum of $500 million, at no cost. This implies the bot can make unsecured loans so long as the loaned assets are paid back within the same block.<\/p>\n\n\n\n

Arkham asserts that the algorithm borrowed 200 million DAI from the decentralized finance<\/a> (DeFi) protocol MakerDAO and distributed the funds to the Aave DAI market. Then, 1,349 Wrapped Ether (WETH) were borrowed against the funds. <\/p>\n\n\n\n

The WETH was then used to acquire Threshold Network (T) tokens on the Curve Finance exchange, sold on the Balancer liquidity protocol.<\/p>\n\n\n\n

The algorithm acquired 0.019 Ether, worth approximately $33, during the trade through these transactions. However, transaction fees for the exchange amounted to roughly $28.76, with an additional $1 sent to the block constructor. This left the computer with a profit of only $3.24.<\/p>\n\n\n\n

A community member praised the bot, stating, “Profit is profit,” although the perceived risk was disproportionate to the quantity gained. According to one Twitter user, doing all of this for a tiny profit demonstrates how bad the bear market is.<\/p>\n\n\n\n

However, not all bots engage in low-profit transactions. Using sandwich attacks against memecoin merchants, a bot operator earned over $1 million on April 20. <\/p>\n\n\n\n

Most profits were generated by focusing on trading activit<\/use><\/svg><\/span><\/a>y involving memecoins such as Pepe coin (PEPE) and Wojak (WOJAK).<\/p>\n","protected":false},"excerpt":{"rendered":"

A crypto trading bot programmed to execute arbitrage trades made numerous complex movements within the Ethereum blockchain, including taking out a $200 million flash loan to earn a meager $3.24.\u00a0 On June 14, Arkham Intelligence, a blockchain analysis firm, provided a synopsis of the bot’s movements. According to the company, the transaction was carried out […]<\/p>\n","protected":false},"author":12,"featured_media":52172,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[11391,14881,5109,11294],"class_list":["post-52162","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-arbitrage-trading","tag-crypto-trading-bot","tag-dai","tag-flash-loan"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/06\/image-35.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/52162","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=52162"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/52162\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/52172"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=52162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=52162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=52162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}