Arkham Intelligence reveals a transaction the place the dealer skilled a sandwich assault resulting in a 100% slippage.
Blockchain intelligence firm Arkham Intelligence revealed on Twitter immediately that an unidentified dealer fell sufferer to a brutal DeFi sandwich assault, the place the dealer misplaced about $10,000 within the assault.
Sufferer swapped $10,000 wETH for $Four value of XMON
In line with the blockchain analytics agency, the dealer wished to swap $10,000 value of wETH for XMON tokens and was sadly caught within the sandwich assault. Because of the sandwich, the dealer ended up buying and selling 6 wETH for $Four value of XMON, shedding virtually 100% of his funds.
Arkham additional commented that the mentioned account was possible attempting to check out an MEV contract.
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Have you ever ever seen anybody get sandwiched with 100% slippage?
This consumer swaps 6 wETH, value slightly below $10Ok, for $Four value of XMON.
That is proper: $4.
Ouch! pic.twitter.com/VxAVvODOrz
— Arkham (@ArkhamIntel) March 2, 2023
Sandwich assaults changing into rampant in DeFi
Decentralized finance gives customers the liberty that’s in any other case missing in conventional finance however DeFi continues to be in its early phases and because of this is prone to dangerous actors, leveraging its vulnerabilities to use customers. One such assault is the sandwich assault.
In a nutshell, a sandwich assault includes “sandwiching” a consumer’s transactions between two transactions. These two transactions are earlier than and after the consumer’s transaction, producing a loss for the consumer and a achieve for the attacker.
In a typical sandwich assault, the dangerous actor identifies a goal from the DEX’s mempool which is commonly open to all customers.
When the predatory dealer identifies a sufferer, they’ll then place one order simply earlier than the sufferer’s pending transaction (front-running) and the opposite commerce after it (back-running).
The focused commerce will then be sandwiched between the attacker’s commerce (therefore its identify) and if profitable, the attacker will create a man-made value improve or lower and generate revenue, leaving the sufferer with a whole lot of slippage.
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https://crypto.information/defi-trader-suffers-100-slippage-in-sandwich-attack/