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EigenPhi HQ 🎯 Wisdom of DeFi (πŸ”­, πŸŽ™) πŸ¦‡πŸ”Š Profile picture
@EigenPhi
Aug 16, 2022 β€’ 10 tweets β€’ 7 min read β€’ Read on X
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1/9 How to use flash loans to capitalize from an #arbitrage? Let's take a look at this transaction, where #MEV πŸ€– earned 1,180 $USDC.
etherscan.io/tx/0x38f9508ce… Image
2/9 Let's start with the roles involved in the transaction:
β€’ From: an EOA account, 0xffFf14106945bCB267B34711c416AA3085B8865F.
β€’ To: MEV πŸ€–, 0xEdE2faFBa9e23418485f49f052D0e1d332853E0F.
β€’ 0x1ce9: an EOA account, 0x1ce943e573041463202090cf662490c95585a046.
3/9 And protocols:
β€’ @dYdX Solo Margin: a decentralized trading platform.
β€’ 1inch/1inch V4 Router: DeFi exchange aggregator.
β€’ Uniswap V3: a DEX/AMM.
β€’ MakerDAO PSM/DssPsm: Maker's Peg Stability Module.
β€’ Curve Pool: an exchange liquidity pool on Ethereum.
4/9 Then, let's see how the #MEV πŸ€– made 1,180 $USDC from the following transaction actions:

1) First, the #MEV πŸ€– 0xEdE2 ("to" in the figure) borrowed 1.5M $USDC from dYdX (Step "1" in the figure) Image
5/9
2) Then, the #MEV πŸ€– 0xEdE2 sent the borrowed 1.5M $USDC to 1inch (Step 2), and swapped the πŸ’° to 1.5M $DAI through the MakerDAO PSM (Step 3,4,5).
3) Subsequently, the #MEV πŸ€– 0xEdE2 sent 1.5M $DAI again to 1inch (Step 6), which helped carry out two swaps. Image
6/9
a. 450,000 $DAI.
With the help of 1inch, the #MEV πŸ€– swapped 450,000 $DAI for 449,826 $USDT in Curve Pool (Step 7,8). Then the 449,826 $USDT were swapped for 18.97 $WBTC with 0x1ce9 (Step 9,10), which were soon used to buy 451,242 $USDC in Uniswap V3 (Step 11,12). Image
7/9
b. 1,050,000 $DAI.
The #MEV πŸ€– swapped 1,050,000 $DAI to 1,050,000 $USDC through MakerDAO (Step 13,14,15). Image
8/9
4) The total 1,501,242 $USDC were sent back to the #MEV πŸ€– through 1inch V4 Router (Step 16,17).
5) The #MEV πŸ€– repaid the 1.5M $USDC flash loan to dYdX (Step 18).
6) The #MEV πŸ€– earned 1,180 $USDC in total (Step 19), with paying 0.4883 $ETH to the miner πŸ”¨ (Step 0,20). Image
9/9 I hope you've found this thread helpful.

Follow me @Eigenphi for more.

Like/Retweet the first tweet below if you can:
Enjoy the article? Visit eigenphi.substack.com
to read more like it and discover the wisdom of #DeFi. And you can download the data to #DYOR: docs.google.com/spreadsheets/d…

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More from @EigenPhi

EigenPhi HQ 🎯 Wisdom of DeFi (πŸ”­, πŸŽ™) πŸ¦‡πŸ”Š Profile picture
May 10, 2023
1/14 πŸ€‘ $32.5M, that's searchers' revenue of #MEV on #Ethereum in Jan and Feb of 2023. In the same MEV supply chain, builders' income reached $67.21M, out of which validators took the most: $62.58M. This research shows you how the value flows thru the whole stream.
2/14 πŸ“Š Here is the big picture illustrating the benefits flow for different parties, specifically builders and validators under the current PBS scheme. One liner: MEV Accounts for 51.6% of Builders' Revenue, and Validators Stand as Top Beneficiaries.
Let's dive deeper. πŸ•΅οΈβ€β™€οΈ Image
3/14 ⚑️During the 2 months, EigenPhi identified 975,290 txs involving MEV payments. Our algorithm classified 64% of these transactions as originating from three types of MEV, which generated a profit of $7.3 million collectively and contributed $18.9 million toward MEV payments. Image
Read 14 tweets
EigenPhi HQ 🎯 Wisdom of DeFi (πŸ”­, πŸŽ™) πŸ¦‡πŸ”Š Profile picture
May 10, 2023
1/10 πŸ„ Alert! πŸ„
Our research shows πŸ₯ͺ MEV’s impact on @CoWSwap is one magnitude lower than on any other DEX.
It’s time to Moo-ve your attention to this report and milk all the buttery details!πŸ₯›
drive.google.com/drive/u/1/fold…
2/10 In the report, 🧐 we cover revenueπŸ’°, frequency πŸ“Š, and volume of all the sandwich MEVs attacking @CoWSwap. On top of these, we also compare πŸ₯ͺ's impact on different aggregators, DEXs & protocols. And we list all the top CoW Swap solvers under attack and many juicy dataπŸ‘‡ Image
3/10 #Uniswap and @CoWSwap, which protocol is more resistant to πŸ₯ͺattacks? In terms of πŸ₯ͺ revenue for 2022, it's $0.13M from CoW Swap solvers. Compared to total fee revenue: $8.55M, sandwich attacks only accounted for 1.5%, one magnitude lower than #Uniswap. Image
Read 11 tweets
EigenPhi HQ 🎯 Wisdom of DeFi (πŸ”­, πŸŽ™) πŸ¦‡πŸ”Š Profile picture
May 8, 2023
1/9 The Chickens Are Clucking, and the Cows Are Mooing With Delight! Why? Because these CoWs are much hard to become the recipe of sandwiches. Our research shows that πŸ₯ͺ MEV's impact on
#CoWSwap is One Magnitude Lower Than on Any Other DEX.docs.google.com/document/d/1lu…
2/9 πŸ₯ͺ frequency: in 2022, 1.9K πŸ₯ͺ attacked CoW Swap's 239K trades, meaning sandwich MEV only accounted for about 0.8% of all the transactions on CoW Swap. Image
3/9 πŸ₯ͺ revenue: Sandwich attacks extracted $0.13 million from CoW Swap solvers. Compared to CoW Swap's total fee revenue of $8.55 million, sandwich attacks only accounted for around 1.5%. Through CoW Swap, the % of attacks is one magnitude lower than #Uniswap. Image
Read 9 tweets
EigenPhi HQ 🎯 Wisdom of DeFi (πŸ”­, πŸŽ™) πŸ¦‡πŸ”Š Profile picture
Apr 24, 2023
Discover Q1 2023's most astounding MEV windfalls at our event "Mastering MEV: Unraveling the DeFi Mystery of Latency and its Impact" at #Consensus2023! Follow us to learn how the USDC Depeg created incredible MEV opportunities πŸš€

🎟️ Claim your ticket: eventbrite.com/e/mev-past-fut…
According to our tracking data, the USDC depegging in Q1 2023 led to a massive MEV revenue peak. Arbitrage contributed $40M, sandwich MEV extracted $46M, and liquidation took $2M from the market. πŸ“ˆ
MEV searchers generated over $89M in Q1 revenue, but a large portion (78.9%) was paid by sandwich attackers to builders for successful front-run/back-run transactions. Arbitrageurs and liquidators paid over half of their revenue to builders and validators. πŸ’°
Read 5 tweets
EigenPhi HQ 🎯 Wisdom of DeFi (πŸ”­, πŸŽ™) πŸ¦‡πŸ”Š Profile picture
Apr 1, 2023
This is an in-depth 🧡thread🧡 of the Euler Attack. We not only cover what happened during the attack, but also give our analysis on the beneficiaries and losers, whales affected, and addressed with net large flowsπŸ‘‡
Ethereum-based noncustodial lending protocol Euler Finance faced a flash loan attack on March 13. The attacker stole millions in $DAI, $USDC, $WETH, $stETH, and $wstETH.
The exploiters' addresses transferred $740.28 million to the Euler contract, while the Euler contract transferred $944.75 million to the exploiters' addresses. As a result, the exploiters gained $204.46 million from Euler Finance, aligning closely with third-party data.
Read 10 tweets
EigenPhi HQ 🎯 Wisdom of DeFi (πŸ”­, πŸŽ™) πŸ¦‡πŸ”Š Profile picture
Mar 30, 2023
2022 is a memorable year for DeFi. Terra Luna, 3AC, Celsius, FTX... Despite all these downfalls, MEV still contributed $328B, half the total DEX volume of $666B on Ethereum. This wonderful Twitter Space reflects on the past year and looks to the future. eigenphi.substack.com/p/highlights-f… Image
All the insights below are from these fantastic guests:
⭐️ @christine_dkim, VP, Research at @galaxyhq
⭐️ @sui414, Danning, Lead Data Scientist at @0xProject
⭐️ @_bout3fiddy_, Core Contributor of @CurveFinance
⭐️ @_prestwich, James Prestwich, Founder/CTO of @nomadxyz_
⭐️… twitter.com/i/web/status/1…
πŸ‘‰Metrics
@christine_dkim: it may vary and rely more on analyzing smart contract activity and understanding how markets are moving. It's crucial to note that MEV is multifaceted, and one's interest may heavily depend on their focus.
Read 13 tweets

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