An Outlook of MEV in Post-merge Ethereum

Transcript

ordering within the blog so if someone were to pay the bribes to the block Builders to include their bundles in the transaction or put their transaction at the top of the block so they they were to have a high suspicious of doing Mev related activity so um has conducted extensive study on those transactions that was paying extra tip to the block Builders and among those transactions the most well-known amoebi types are habitat in atomic transaction and sandwich attacks and also the liquidation um we have labeled and provided data on

those Mev tabs through our products so here is a typical Arbitrage transaction will look like so it will involve the swapping between at least two trading menus and you need to have the price difference between the trading menus and also the bot will generate a profit after a circle bike of the Arbitrage and a sandwich attacks the feature is also very clear so their tiger we're targeting on the victims swiping pool and then conduct front running before the victims transaction and then do a backgrounding uh after the victim

transaction to generate the profits um here is um what a liquidation transaction will look like so the Liquidator replace the borrower's debt assets and in return get the borrowers collateral Assets in a better press um so here's the three and maybe types that will have been identified and now let's see uh the recent Trends in the Amir market after the merge so um there have been a few significant events that has happened things emerge um like to the two node volumes uh the FTX crash in the November and also the usdc debugging in March and the Mev

activities because more become more frequently during the market market fluctuation and also um with the appearance of the generated Subway Sandwich Board since April the Mev activities has been pushed up to a new level here is the monthly Revenue showing that those me abouts has been generated things merge so as you can see um during the FTX crash and usdc debugging they were generating much more Revenue than other months and also the Jared plays a crucial role in contributing in making up like the in April and in May the revenue just much

more than other months so it's obvious like from the data those me searches definitely drink a lot of money from the market but let's be clear the Searchers are not the only ones that involved in the MBA supply chain so um socialists have needs to pay split their profit to the block Builder to bribe the blog Builders to include their bundles in the transaction and guess what the block Builders also need to pay the bribe to the validators to get their proposed block being accepted so it's a whole chain of the bribing going on there

and here is the Mev how the Mev value has been allocated during the supply chain we have invested on the data for the last months so it's from the data is from the June 11th to the July 11th uh this year and it can be seen that the Searcher has been extracted almost 20 million dollars revenue from unchain transaction and it is just based on the minimum amount because we're only considering just the Arbitrage and the sandwich and liquidation but among those revenues the Searcher can only keep nearly like five million dollars of the profit in their pocket and the rest of the Meb rewards will

flow to the builders and validators and also the builders can only keep like 1.5 million dollars and then uh the radiators are the ones that kept kept the most Emmy rewards for around 16 million dollars um here I have um clarified with different colors on the transfers in black and purple color where it depends on whether there is a director transfer at the end of the block from the Builder to the validator and according to flash boss definition the behavior of the transfer from the Block Builder to the validator is considered as a typical amiable boost

Behavior so it is worth noticing that there's a seven million dollars of the revenue from the Searcher flow to the supply chain but um it is by the way that those Builders and radiators role is not separated so it is a concerns of the current situation of the PBS um and also is this one thing that it should be noticed and notice that is um why did her as oppose to generate the profit from the regular transactions but currently uh the Mev rewards has accounted for almost half of their income um so here is the data and also the an

evaluation that we want to share but um so things data platform that we kept monitoring the liquidity data and especially on Mev but there's a question that we kept asking ourselves is still enough because we think the Mev Market is a quite Dark Forest here and that's that is because these serum transactions is like of the transparency so like for the ordinary users they could suffer all kinds of losses from due to like swapping for malicious token or falling to the victim of Sandwich attacks and also for the blockchains researchers

and also the data analysts they may also be very curious about what's the most damage what's the most recent trends for the mea boards and also for the ambient board themselves they could be suffered uh the tax only targeted on them that's where we think the transaction analysis becomes very crucial in ending more transparency to the ecosystem but how to do a transaction analysis so here's the situation if you go to translation hash what would you do I think most of them were put into it put in it into Easter scan and search for the transaction to see whether it

has been executed successfully or not but what if you want to get more information about this transaction so um the information you may get it for Mr Skin is like the from to address of this ballistic transaction and the erc20 transfers all the gas for information the internal transfers or the even the even logs um but however decoding is kind of information requires Advanced knowledge on the blockchain and it is hard to understand also uh to decoding the information is still time consuming we believe everyone can understand

blockchain transaction so if we can get a transaction analysis too with a feature like it provides intuitive token flow also like the address label service the transaction Behavior label the address group also the measure of the transaction distance and also the strategy identification so this is where again TX could provide a help so I'm going to share some cases I'm doing um when I'm trying to analyze Unchained transactions using again TX here is an interesting case when I analyze a sandwich but you may wondering what's the recent strategies has been employed by itself

by the sandwich board so for example this is a typical sandwich attack will look like the bot will hold the assets to initiate the attack and but in certain cases you need the sandwich balls need to input a large amount of volume to initiate the attack but what if the boat doesn't have that much asset in their account what will they do so here is a clever Sandwich Board that comes into play so it uses the feature of the flash swap from uni swap it first borrows out a large amount of usdt and then use it to

attack on the target pool of Dudu and then it repays uni swap by swapping out the required asset of usdc and then we pay to the union swap so this board doesn't need to hold that like 1 million USD in the account but they could initially this attack so its leverage its position to conduct the front running here's another case that I want to share is a targeted attack we find it just just the Target only on the Arbitrage Bots so um as you know those the competition among those emulables is very very

intense in order to outperform their peers they need to optimize their gas usage that means um they would escape the steps of the security checks sometimes to save the gas but in this way they become the target of the specific attack so here is a TX showing how this is happening the first is the attacker sending a baiting signal into the mempool and this episode about just the fondness you know and then execute a backgrounding but a signal contains malicious tokens this token called yoink

so here is the transaction for this apish reports looks like the Arbitrage so-called went very smoothly so it's like start with 0.0558 WTH and back with 0.08 wh so it got a surplus but you can see there is um malicious transfer this is like an abnormal transfer from this contact to the leave address of 4.2 WTH and what is surprisingly is is leave address doesn't belong to this me board or even the block Builder's address and we further conduct some analysis and finance Leaf address belongs to the

group who sends the Betty signal to initiate the attack um here is um another scenario where someone experience a loss due to exchange for a tax token um so you'll notice that there's a red rectangular label here uh someone was trying to swap the wbmb token in the pancake swap pool and trying to buy some Coe token but instead of getting expected amount of the token there is a proportion of the amount going flowing to a leaf address from the cake pool

and this is what we call a tax token now this kind of scenario would be easier to identify uh when you like search in Easy scan or BSC scan with our Chrome attention so simply load the token flow chart and you'll see the initiate token flow happening within this transaction so be sure to check if there is any abnormal transfer happening within your transaction so you can avoid loss without even knowing about it um due to the time constraints I could only share the three use cases that I find the women doing in the analysis of

unchain transaction but here if you're interested in more uh like new Mavis charges or complex trading stages or even some more Unchained attacks I would invite you to scan the QR code here this is a book uh booklet that we have just written with a collection of all the interesting and fascinating transactions that we have been identified so I hope you will find anything that matches your interest and also expand your knowledge on blockchain so happy reading okay and one last thing is again 5 has recently launched our blog Builder service so if anyone is interested in

clicks can't contact with us okay thank you for all the print for listening and presentation [Applause] [Music] thank you [Music]