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The Sandwich Attack: The one sandwich even whales don’t want to eat! Protect your wallet and avoid getting sandwiched.

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by COINS NEWS 112 Views

The Sandwich Attack: The one sandwich even whales don’t want to eat! Protect your wallet and avoid getting sandwiched.

Sandwich attacks are a growing concern for cryptocurrency investors, with bots making millions while unsuspecting traders lose their hard-earned funds. In this type of attack, a bot takes advantage of a large transaction and buys the token before the deal is approved, raising the price and causing slippage. After the user sells at an inflated price, the bot quickly sells its tokens for a profit, leaving the victim with a significant loss.

#1. Kyberswap helped swap $2.03M to 0.05$

When USDC was plummeted, a user wanted to swap their $2.03M from the curve pool to USDT, but Kyberswap sent it to the Uniswap pool where there was no liquidity.

As a result, they sold $2.03M for 0.05$ -

Transaction hash: 0xde46a6bb1fc7834dde4d01428c88f84d65a607f4dc11b7f3dd710e86b7d226a8

But this is not a Sandwich Attack - it's just the user's carelessness, and they should have set a slippage. Therefore, one important lesson is to not forget about slippage, always set it and be prepared to lose all percentages.

#2. Bot Earns $78k in a Second

A user exchanged $13.4M USDT for USDC via 1inch. The bot caused a disbalance in the Curve pool in six transactions.

Therefore, 5.4M USDT exchanged for 5.28M USDC, and the bot earned its $78k, risking $500k at the moment, now this is a sandwich attack

Transaction hash: 0x29afdc352692a037a80d871fce20dd7515b70313860a63220c57529022ab22c7

Algorithm of Sandwich Bots

1. Scan Mempool for pending transactions.

2. Find a potential victim with high returns.

3. Use Flashbots to execute algorithms we describe above.

To protect yourself from falling victim to a sandwich attack, consider these tips:

  • Avoid making significant transactions during periods of high market volatility.
  • Double-check all transaction details, including gas and exchange rates, before signing off.
  • Use DEXs that offer anti-front running strategies to connect traders directly with trustworthy validators.
  • Employ tools that detect and prevent slippage, but be prepared to incur gas costs even if the transaction fails.
  • Divide a large sum into multiple transactions to avoid becoming a target for attackers.
  • Consider blockchains with alternative mechanics that operate on a first-come-first-serve basis.

Don't let a sandwich attack drain your funds. Stay vigilant and take steps to protect your investments.

Have you ever been sandwiched ? Discuss below

Some more sandwich attack profit made by the bots in the pic below :

https://preview.redd.it/538nb9s8v7xa1.png?807&format=png&auto=webp&s=66ad171461e735b11b1ed159aa6647bdfe12f5bc

submitted by /u/Bitmandoo
[link] [comments]

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