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- 1 The crypto trading bot is programmed to make the technical analysis to trade.
- 2 The bot made a move of a $200 Million flash loan to make a profit of $3.24.
The movement by the crypto bot made various community members comment on their views. One of them said a move made is good as a profit is considered as profit, whether less or more, while another said this shows how down the bear market is.
The bot made movements on the Ethereum blockchain, which included taking a $200 Million flash loan and making a profit of just $3.24.
Blockchain Firm Shared Bot’s Movement
Arkham, a blockchain analysis firm, on June 14th, shared the bot’s movement. As per the firm, the transaction was made by an arbitrage bot that borrowed the assets without providing a collateral. It simply means the bot made transactions on unsecured loans.
The firm declared MakerDAO burned and minted $200M worth of DAI in the same block. Furthermore, it asked whether it’s a part of the arbitrage transaction with a net profit of $3.
Additionally, the firm added this is done on MakerDAO because of the reason that DssFlash contract on MakerDAO allows free borrowing on any amount of DAI. The free limit of borrowing is till $500 Million which means the bot can borrow with the unsecured loan until the asset loan is paid in the same block.
Arkham said the crypto bot had taken 200 Million DAI from MakerDAO and dispensed it to the Aave DAI market. This had led to 1.349 Wrapped Ether (WETH) borrowed against the fund. After this, on Curve Finance Exchange, WETH was used to buy the Threshold Network (T) tokens which were followed by sale on Balancer, the liquidity protocol.
After the Transaction Fee, Minimum Profit of $3 is Made
MakerDAO is a crypto protocol that helps any user with ETH and Metamask wallet to take part in borrowing and lending. You can grant money in DAI, which is a form of stable cryptocurrency. Aave DAI (ADAI) is also a cryptocurrency and functions on the Ethereum platform.
Although the risk is high, the step taken by the bot shows how bad the bear market is, while one other comment from a user on Twitter said at least a small profit had been made.
With transactions, the crypto bot received 0.019 Ether of value $33 at the time of trade, whereas the transaction fee of the trade was approx $28.76, and the $1 amount was sent to the block builder. Hence, the bot left with a profit of $3.24 only.
In one such related incident of a bot making a profit, the bot operator gained $1 Million. On April 20th, the unknown Maximal Extractable Value (MEV) bot operator cashed $1 Million. The bot executed a sandwich attack against buyers and sellers of two new meme coins. Pepe coin (PEPE) and Wojak (WOJAK) were the two targeted coins.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
