This MEV bot gained and lost over $1M in 1 hour

A Maximal Extractable Value (MEV) bot 0xbaDc0dE mislaid implicit $1 cardinal aft a hacker exploited a flaw successful its code.

Imagine making 800 ETH successful a azygous arb

… and an hr aboriginal past losing 1100 ETH to a hacker

Here is the communicative of 0xbaDc0dE, an MEV bot who gained and mislaid it each successful a fewer hours tonight

— @bertcmiller (@bertcmiller) September 27, 2022

Flashbots’ Robert Miller of Flashbots explained that 0xbaDc0dE was a mempool bot progressive connected ETH implicit the past fewer months, making astir $220,000 transactions.

The bot got its large interruption aft a idiosyncratic tried to merchantability cUSDC worthy $1.8 cardinal connected Uniswap V2 but got astir $500 successful return, which generated a monolithic arbitrage opportunity.

According to Miller, 0xbaDc0dE took this accidental and raked a handsome nett of 800 ETH.

However, the euphoria was short-lived due to the fact that the MEV bot mislaid implicit 1100 ETH, astir $1.4 cardinal an hr later, owed to a flaw successful the code.

Miller said:

“It seems that the 0xbaDc0dE did not decently support the relation that they utilized to execute dYdX flash loans.”

The hacker exploited the “callFunction,” which is the relation called by the dYdX router arsenic a portion of the flashloan execution, and the MEV bot codification unluckily allowed arbitrary execution.

So, the hacker got the bot to o.k. the transaction and moved each the funds to different address.

The caller incidental showed however malicious players are taking vantage of vulnerabilities recovered successful codes of crypto projects. This twelvemonth alone, billions person been mislaid to hackers exploiting these vulnerabilities.

Only recently, a achromatic hacker saved Arbitrum from an exploit that could person resulted successful a nonaccomplishment of astir $500 cardinal owed to an initialization-related vulnerability.

The station This MEV bot gained and mislaid implicit $1M successful 1 hour appeared archetypal connected CryptoSlate.