EigenPhi Detects Three MEV Contracts Profiting Through “Sandwich Attacks”

04/30/2023 08:19 • Crypto & Markets • 61 views

On April 30th, EigenPhi detected that three MEV contracts had made significant profits through “sandwich attacks”. The MEV contract starting with 0x6b75 earned a profit of $465126 from $33374 within 7 days, with a return on investment of 1400.1%. The MEV contract starting with 0x4707 earned a profit of $27204 from $18 within 7 days, with a return on investment of 64346%. The MEV contract starting with 0x0000 earned a profit of $45496 from $687 within 7 days, with a return on investment of 3145.5%.

A sandwich attacker earned over $460000 for $30000

Introduction

On April 30th, EigenPhi detected three MEV contracts that made significant profits through “sandwich attacks.” These attacks involve intercepting Ethereum transactions and placing a new transaction in between them to take advantage of price discrepancies.

What is MEV?

MEV stands for Miner Extracted Value, which is the amount of profit that miners can extract from the Ethereum network by reordering transactions. This practice has become increasingly lucrative, with some estimates suggesting that it may account for up to 1% of the total value of all Ethereum transactions.

“Sandwich Attacks”

Sandwich attacks are a type of MEV extraction that involves intercepting two transactions from different Ethereum wallets and placing a new transaction in between them. By doing so, the attacker can take advantage of price discrepancies in the network and make a profit.

The MEV Contracts that Profited

EigenPhi detected three MEV contracts that made significant profits through sandwich attacks on April 30th. These contracts are as follows:

MEV Contract Starting with 0x6b75

This contract earned a profit of $465,126 from $33,374 within 7 days, with a return on investment of 1,400.1%.

MEV Contract Starting with 0x4707

This contract earned a profit of $27,204 from $18 within 7 days, with a return on investment of 64,346%.

MEV Contract Starting with 0x0000

This contract earned a profit of $45,496 from $687 within 7 days, with a return on investment of 3,145.5%.

Why are These Attacks Occurring?

There are several reasons why sandwich attacks and other forms of MEV extraction are occurring on the Ethereum network. One of the main reasons is the network’s reliance on gas prices, which are notoriously volatile. This volatility creates opportunities for attackers to take advantage of price discrepancies and make a profit.
Another reason is the increasing complexity of Ethereum transactions. As more and more smart contracts are developed, transactions on the network are becoming more intricate, which creates more opportunities for MEV extraction.

Conclusion

Sandwich attacks and other forms of MEV extraction are becoming increasingly common on the Ethereum network. While these attacks are not illegal and are not inherently malicious, they do highlight some of the vulnerabilities of the network. As Ethereum continues to grow and evolve, it is likely that MEV extraction will become even more sophisticated and commonplace.

FAQs

Q: Are sandwich attacks illegal?
A: No, sandwich attacks are not illegal. However, they can be seen as unethical by some members of the Ethereum community.
Q: Can MEV extraction be prevented?
A: While it is difficult to completely prevent MEV extraction, there are several measures that developers and users can take to minimize the impact of these attacks.
Q: How do sandwich attacks work in more detail?
A: Sandwich attacks involve intercepting two transactions from different wallets and placing a new transaction in between them. This new transaction takes advantage of price discrepancies in the network to make a profit.

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