One crypto trading bot recently gained news for its daring actions and small gains in cryptocurrency, where fortunes can be won or lost instantly. The bot went to extraordinary lengths within the Ethereum network to make arbitrage deals. Unfortunately, this effort was for a tiny $3.24 profit, with a whopping $200 million borrowed in the process.
Arkham Intelligence, a blockchain analysis business, revealed insight into the bot’s activity on June 14. It was mentioned that the bot used flash loans, which are loans that can be obtained and returned in the same block.
This was done by the bot to conduct dangerous transactions. This bot used MakerDAO’s “DssFlash” smart contract, which allowed for free borrowing of DAI, a stablecoin pegged to the US dollar. The bot started by borrowing 200 million DAI from MakerDAO and then redistributing the cash to the Aave DAI market.
It then borrowed 1.349 Wrapped Ether (WETH) from the DAI. It also utilized WETH to buy Threshold Network (T) tokens on the Curve Finance exchange. Lastly, the bot used the Balancer liquidity protocol to sell Threshold Network tokens.
BREAKING: 🤖💰 A crypto trading bot borrowed $200M, took risks, and made complex moves on #Ethereum blockchain… all for a mere $3 gain!
— Walletor (@walletorapp) June 15, 2023
Despite the complexity and danger involved, the bot’s total profit was only $3.24. Transaction fees for the trades averaged roughly $28.76, leaving the bot with a negligible profit. The crypto community reacted with conflicting feelings. Some amusingly applauded the bot, citing the phrase “profit is profit.” Others, on the other hand, pointed out that such little profits highlighted the difficult character of the bear market.
It is also important to note that not all trading bots make low-profit trades. In another case, a trading bot operator made almost $1 million from sandwich attacks. These attacks were mostly aimed at meme coin traders. Profits were made by derived meme coins such as Pepe Coin (PEPE) and Wojak (WOJAK).
Conclusion
The narrative of the crypto bots’ risky attempt and meager earnings serves as a reminder of the current market instability. Some bots navigate this world well, although the unpredictable nature of it sometimes surprises them. As the crypto market evolves, keep in mind that even minor gains are significant in such a negative market.
