Is anyone safe using DeFi?
A user on @Uniswap v3 was just sandwiched attacked out of $216k while simply trying to swap $221k USDC to USDT.
Mind you, this was a pool that had over $35m of USDC and USDT it.
This is insane.
How did it happen?
An MEV bot front-ran the tx by swapping all the USDC liquidity out.
After the transaction executed, they put back the liquidity.
The attacker tipped a block builder (bobTheBuilder) $200k and profited $8k from this transaction.
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A few ways to try to avoid this:
1. Reduce slippage tolerance on transactions
2. Don't use Uniswap. Use cowswap or another aggregator - which can provide better execution + prevent this malicious MEV
3. Use a custom RPC that doesn't expose your transactions publicly
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What is Uniswap's responsibility here?
We can't live in a world where a user executes a simple swap of $221k in a liquid stablecoin pool and gets rugged.
----
P.S. data team @the_defi_report is cooking. Going deep on MEV to share the economics of various chains from the ground up.
Might not be pretty.
If you want to stay on top of all the insights we're sharing, you can sign up below 👇
A user on @Uniswap v3 was just sandwiched attacked out of $216k while simply trying to swap $221k USDC to USDT.
Mind you, this was a pool that had over $35m of USDC and USDT it.
This is insane.
How did it happen?
An MEV bot front-ran the tx by swapping all the USDC liquidity out.
After the transaction executed, they put back the liquidity.
The attacker tipped a block builder (bobTheBuilder) $200k and profited $8k from this transaction.
-----
A few ways to try to avoid this:
1. Reduce slippage tolerance on transactions
2. Don't use Uniswap. Use cowswap or another aggregator - which can provide better execution + prevent this malicious MEV
3. Use a custom RPC that doesn't expose your transactions publicly
-----
What is Uniswap's responsibility here?
We can't live in a world where a user executes a simple swap of $221k in a liquid stablecoin pool and gets rugged.
----
P.S. data team @the_defi_report is cooking. Going deep on MEV to share the economics of various chains from the ground up.
Might not be pretty.
If you want to stay on top of all the insights we're sharing, you can sign up below 👇
@Uniswap If you'd like to have our latest data & research hit your inbox when it's published, sign up here: thedefireport.io/subscribe
Appreciate all the comments. Looks like the tx did not come from Uniswap's front-end, which has MEV protection and default slippage settings.
Looks like this might be money laundering? But what doesn't make sense is that the attacker (or money launderer) paid $200k as a bribe for tx inclusion. Why would you do that instead of using a mixer?
Looks like this might be money laundering? But what doesn't make sense is that the attacker (or money launderer) paid $200k as a bribe for tx inclusion. Why would you do that instead of using a mixer?
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