Introduction

In the vast ocean of blockchain and cryptocurrencies, Miner Extractable Value (MEV) bots have emerged as a significant player, navigating the turbulent waves of the crypto seas with precision and agility. One such bot, operated by jaredfromsubway.eth, has gained attention for its successful exploits, particularly through a technique known as "sandwich attacks". This article embarks on a journey to explore the workings of jaredfromsubway.eth, the concept of sandwich attacks, and the broader implications for the crypto ecosystem.

MEV Bots: The New Navigators of the Crypto Seas

Jaredfromsubway.eth is an MEV bot operator who has been training his bot using machine learning for years, making it one of the most efficient in the market. He has spent over $3 million on gas fees alone to perform his trades. In a single month, he earned an incredible $1.1 million, primarily through sandwich attacks on crypto projects that charge 0% tax. His on-chain activities can be viewed on his Etherscan page.

Sandwich Attacks: A Closer Look

Sandwich attacks occur when an attacker "sandwiches" a user's transaction between their own two transactions, leading to potential losses for the victim and profits for the attacker. The attack is possible due to the mempool - a waiting area for unconfirmed transactions on the blockchain. If a user sets a high slippage, an attacker can exploit this by manipulating transaction order. The attacker profits by buying the asset from the victim at a value lower than market value, then selling it.

The Competitive Landscape of MEV Bot Trading

Finding MEV opportunities is a constant competition against thousands of other bots. To be successful, a bot needs to keep track of new tokens, DEX liquidities, pending transactions, find profitable opportunities quickly, and give the biggest bribe to the block validator. Despite the competition, it's not possible to copytrade jaredfromsubway.eth. However, if one were to build their own bot that is faster and better than others, they could potentially earn a lot.

Shielding Against MEV Bots

Users can shield themselves from MEV bots like jaredfromsubway.eth using Flashbots. Additionally, CowSwap, a decentralized exchange aggregator, offers peer-to-peer trading and protection from MEV. It uses batch auctions with uniform clearing prices for all trades in the same batch, preventing any value from being extracted by placing transactions in a certain order.

Creating Your Own MEV Bot

For those interested in creating their own MEV bot, Blocknative provides a comprehensive guide on how MEV searchers can leverage their platform to test and refine mempool strategies. They offer an MEV bundle RPC endpoint that allows MEV searchers to interact with Blocknative builders. Their advanced mempool filtering systems can be used to test MEV triggers and searcher strategies.

Conclusion

The rise of MEV bots like jaredfromsubway.eth has brought a new dimension to the crypto trading landscape. While these bots can generate significant profits, they also highlight the need for users to understand and protect against potential vulnerabilities in their transactions. As the crypto ecosystem continues to evolve, so too will the strategies and tools used by traders to maximize their gains and safeguard their assets. The story of jaredfromsubway.eth serves as a fascinating case study in this evolving landscape, offering valuable insights into the workings of MEV bots and their impact on the crypto ecosystem.