Announcing Flashbots Protect: a suite of tools that makes it easier to use Flashbots for frontrunning protection

The first two Protect products are an API for developers and an RPC endpoint for end users

A brief thread about these products

medium.com/flashbots/anno…
It's always been possible to submit transactions to Flashbots for frontrunning protection. But it hasn't always been easy to do so.

The Flashbots Auction is powerful but submitting transactions has required new tools and new ways of thinking about those transactions.
For example the Flashbots Auction uses "bundles" and not transactions as the relevant object

As you can see in this image, bundles include transactions, but have other fields too

That means you can't natively send transactions to Flashbots, you need to wrap them in bundles Image
Another example: in the image you might have noticed Flashbots allows you to target a specific block number for inclusion!

That's a powerful feature for users, but it requires that users to send a bundle for every block, and thus you need new tooling to deal with that
Flashbots Protect API abstracts away this complexity for devs: simply pass us a signed transaction and we'll bundle it, repeatedly submit it, and update you on its status

There are two ways to integrate - a websocket or posting a JSON RPC message (eth_sendRawTransaction)
The first product to use the Flashbots Protect API is the Flashbots Protect RPC 🙂

The Flashbots Protect RPC is an RPC endpoint that users can add to their MetaMask which sends all of their transactions to Flashbots
On the backend the RPC endpoint will smartly manage the submission of transactions.

If it's clear a tx doesn't need frontrunning protection (eg: simple ETH transfers) we'll pass it to the mempool.

Otherwise all txs are sent to the Protect API, which submits them to Flashbots!
Here's some key considerations for the RPC endpoint, and a guide to setting it up:
docs.flashbots.net/flashbots-prot…

This is still in beta, by the way! We hope to ship better tooling for monitoring your transactions soon :) ImageImage
If you want to use the Flashbots Protect API directly here's our quick-start page:

docs.flashbots.net/flashbots-prot…
A big shoutout to @donvincenz0 and @Dire_0x from the Alchemist community for their integral work on the Protect API and help with the RPC

I also want to highlight Swaraj from Nethermind, and Alex & Ivan from MiningDAO for their contributions to the Protect RPC!
We're super excited to make Flashbots more accessible to users and developers. If you have feedback or product suggestions please send them to me.

We're also hiring! Check out our jobs here if you're excited about working on Flashbots & tooling like this

notion.so/flashbots/Flas…

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More from @bertcmiller

8 Oct
MEV isn't for the faint of heart

Here's a searcher whose contract had a bug and got exploited, losing them $1m in a single transaction (!)

etherscan.io/tx/0xcc25b53fd…
The above searcher wrote their contract in Yul and had a function for token approvals that they didn't have the appropriate checks on.

The attacker reverse engineered the decompiled assembly, found the never used approve function, and figured out the custom data input format.
I'm starting to think there might be one or two sharks out there that are doing this full time.

What a job that would be: decompiled assembly bug finder

... starting salary $5m/year
Read 5 tweets
30 Sep
This week a bot drained ~30 ETH from🥪 bots using clever baiting and a fake Uniswap pool

A thread on 🥪 bots, how they defend themselves, and the latest in breaking those defenses 👇🏻🧵
.@NathanWorsley_ created the first poison sandwich with salmonella. Over 200 days later people are still wrecking sandwich bots for fun and profit!

I'll briefly recap how salmonella works for those who are new

github.com/Defi-Cartel/sa…
🥪 bots watch the mempool for users buying on DEXes and 🥪 them:
1.🥪bot buys an asset to push the price up
2. victim buys at an inflated price, pushes price up more
3. 🥪 bot dumps at a profit at the victim's expense
Read 27 tweets
27 Sep
Rediscovered what I think is the biggest on-chain arb of all time: a 1200+ ETH arb

etherscan.io/tx/0xb72689042…
Transaction fee of ~$130 too. Insane.
Would love if someone could prove me wrong and has a bigger arb to share
Read 4 tweets
27 Sep
Today Flashbots is releasing v0.4 and introducing mega bundles to the Flashbots Network

Mega bundles will let us innovate faster, support more bundles and will lead to new searcher strategies and more miner revenue

A thread on mega bundles 🧵👇🏻
Flashbots is an open MEV marketplace. On 1 side of the market users submit "bundles" of txs. On the other miners run an auction & place the highest gas price bundles at the top of blocks.

This allows miners of any size to extract MEV, which is important for economic security.
In the early days of Flashbots only 1 bundle could be included in a block. That greatly limited our impact.

Our v0.2 release introduced multiple bundles per block through a merging process & gave miners control the number bundles they wanted to include

Read 16 tweets
8 Sep
Let’s get a few things straight.

Eden's lead investor - @multicoincap - is lying about Flashbots and Eden.

🧵
Contrary to Multicoin's claims, minimizing MEV is core to Flashbots' mission & products.

That shows from our funding of fairness and ethics research, work on MEV aware dApps, & 100s of users that have used Flashbots to skip the mempool & protect themselves from frontrunning.
More importantly, Multicoin is lying about Eden: it is not permissionless OR transparent.

Eden is a permissioned system with a multisig that has exclusive control over MEV payouts to miners. The Eden team alone decides whether miners are mining "Eden blocks" and should be paid.
Read 10 tweets
6 Sep
Dropping what is probably the most alpha packed thing I've written so far: an in-depth writeup of my strategy for a highly competitive MEV opportunity, the Synthetix Ether Collateral Liquidations, along with code

Blog post:
bertcmiller.com/2021/09/05/mev…

Repo:
github.com/bertmiller/sMEV
Blog post contains:
- My process from start the finish
- Explanation of why I made the design decisions I did
- How I sped up data collection
- A few gas optimizations
- Explanation of my economic strategy
- My novel bundle submission strategy
- Code snippets
- Many links
Repo contains:
- The only (I think?) open source example of how to backrun transactions
- Monitoring tools I made
- Contracts used for execution, including dydx flashloan
- Contract for data collection
- my somewhat embarrassing messy Hardhat testing env
Read 7 tweets

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