1) Was literally reading this off while this guy posting, so writing a thread to summarize this piece. As I'm also a victim of sandwich attack, I'm always wondering how dark is the forest? It tries to quantify the estimated overall EV for sandwich attacks, liquidations and arbs.
https://twitter.com/officer_cia/status/1417848883342938114
2)Destructive Front-Running: Front-runs txs causing the execution of subsequent txs to fail.
Cooperative Front-Running: Front-runs txs still ensuring the subsequent txs to be successful. e.g. Sandwich attacks.
Cooperative Front-Running: Front-runs txs still ensuring the subsequent txs to be successful. e.g. Sandwich attacks.
3) Back-running: Executing a tx shortly after a prev tx, e.g. oracle update txs and within sandwich attacks.
Clogging: clog or jam the blockchain to prevent others from issuing txs.
Clogging: clog or jam the blockchain to prevent others from issuing txs.
4) Sandwich attacks: The analysis observes that 61.88% of the attacks use different accounts to issue the front and back running txs
5) while a sandwich attack adversary will likely try to position its transactions relatively close to the victim transaction, in practice we observe multiple profitable sandwich attacks where the involved transactions are more than 200 block positions apart.
6) 87.61% of the back-running transactions only 0 to 1 GWei less than prev txs. Also identified 49 smart contract addresses attempting to extract value simultaneously.
7) Fixed spread liquidations: Due to @compoundfinance allows any participant to update the price oracle with an authenticated message. The back-running liquidations have higher gas prices on Compound.
8) Arbitrage: most traders prefer simple strategies that only involve 2 or 3 markets (aka. two-point arbitrage and triangular arbitrage). Less than 2% of the transactions execute strategies with more than four markets.
9) Clogging: Clogging attacks on #Ethereum can be successful because 79% of the miners order transactions according to the gas price.
10) This is what appears to have happened with the infamous Fomo3D game, where an adversary realized a profit of 10, 469 ETH by conducting a clogging attack over 66 consecutive blocks (from block 6191962 to 6191896).
11) While clogging appears expensive, the costs can be written off.
12) Identifying Non-Broadcast Transactions: When comparing those with the transactions we observed on the network layer, we find that 136,143 mined transactions were not broadcast prior to being mined. We hence can conclude that 1.64% of the transactions are being privately.
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