Doing some rough analysis on the Avi CRV situation. He funded the account with 54.456m USDC and transferred out to OKX 71.550m CRV. As he only has 378k USDC left he effectively bought the CRV at an average price of $0.756.
Loss at possible sale prices:
$0.5 = -$18m
$0.6 = -$11m
What play could he have done? Although CRV spiked to over 70c there wasn't a chance to exit with size at that price. So if he was planning to hold and sell after a squeeze he's sitting on a loss.
Likewise if sold on the way down to try and buy the bottom, CRV bounced too quickly
Oct 5, 2022 • 11 tweets • 3 min read
Another 🧵 on some more ancient mev. This time one of my favorite pvp games.
Did you know that due to the way AMMs work the first person to buy a newly listed token can't lose money?
This was insanely profitable for a moment in time
Uniswap v2 style dexes calculate the price you pay based on the balance of tokens in the pool.
At inception the price can only go up as there are no other new tokens in circulation to be added to pool.
If you're the first buyer the price cannot drop below what you paid for it
Apr 19, 2022 • 16 tweets • 4 min read
Before my current life I was deep into MEV (back before it was called MEV). I feel it was long enough ago that the omertà has expired.
So here is the first of some threads on ancient alpha. MEV from > a year ago.
First up - Compound liquidations
On Compound if you take one step over the line you can be liquidated for 50% of your entire collateral at a 5% discount.
For example. If you have $200k collateral you can be liquidated for $100k at the price of $95k. $5k profit minus costs to the liquidator
Nov 15, 2021 • 19 tweets • 5 min read
Strategies and Yearn, a thread.
Yearn has $4b in their v2 vaults and anyone can code a strategy and earn 10% of the profits. There is no interview process. Just create the strategy and follow these steps.
So how do you actually get a strategy to prod and scaled to > $100m?
1 - Find a big farm
Finding farms that can safely take >100m is hard.
Yield normally comes from gov token farming and when we add our funds we dilute the distribution.
So if APR is 100% and there is 10m in there already, by adding another 90m we crush the yield to 10% APR
Nov 2, 2021 • 7 tweets • 2 min read
Here's the theory behind the Cream attack, a thread:
You need a token that can be borrowed, used as collateral and have its value increased in the same transaction.
Uni Lps, xSushi, yVault tokens. Any will do
Then you flash loan a shit ton of money and lend it out on your target protocol. Borrow all the exploitable tokens available and send them to your second wallet.
