Even in a bearish mood, the DeFi market still has been welcoming new yield farming protocols every day. With new protocols come new capitals; with new capitals derive new volatility.
The following chart illustrates the last 7 days’ arbitrage performance expressed in trading profit.
To everyday traders, the profit of arbitrages is not as substantial as trading volumes because we care less about how much money searchers made than how much money they targeted.
Moreover, when you split the last 7 days’ trading volume by type, the following chart unveils the unknown danger we face during each and every token swap.
The danger is in the purple part of the chart: Sandwich arbitrage, the most cloaked, shady, and damaging MEV thing in the DeFi world. And they are effectively out of the public eye without constant monitoring and exposure.
According to the volume chart, Sandwich arbitrage has taken up the majority of Ethereum arbitrages, which means it’s highly likely that your token swap is in the scope of sandwich searchers without any protection.
In this article, we will examine what Sandwich arbitrage is, how it impacts the market, and how to be equipped to protect yourself.
Sandwich module
Since the beginning, EigenPhi has been devoting itself to building a healthier and more robust DeFi ecosystem. In EigenPhi Classroom, you can read our explanation of the mechanism of Sandwich arbitrage. We also showed you our approach to identifying a Sandwich arbitrage.
Moreover, we released the Sandwich module, providing a systematic analysis of Sandwich arbitrage. Here are the features of this module.
- Summary displays some key metrics of the sandwich arbitrage market, including transaction count, total profit, total cost, number of attackers, and number of victims.
- Top Ten Exploited Contracts demonstrates the top 10 protocol contracts attacked by Sandwich arbitrage in percentage, ranked by numbers of Sandwich arbitrage. According to the chart above, Uniswap V3, 1inch v4, and even the Metamask’s router are all exploited by Sandwich arbitrage.
- Profit Leaderboard lists the top 10 sandwich arbitrages ranked by profit in the chosen time duration. You can also sort them using profit, cost, and revenue. Click the address, and then you can examine the details of the arbitrage.
- Attacker Leaderboard shows the top 10 sandwich arbitrage contracts ranked by the total profits through sandwich attacks during the chosen time frame.
- Victim Leaderboard lists the top 10 sandwich arbitrage victims ranked by loss. Click the victim address, and then you can find out the detail of it, including the top attackers and the attacking history chart.
- Real-time Attack is a real-time sandwich arbitrage trading view with profit, cost, and revenue. Click the arbitrage hash address to examine the token flow of the sandwich attack.
We also used the data to generate the Sandwich arbitrage Daily Report to give you an overview of the attack and its specifics on a day-to-day basis. Please read this article to find out the daily impact of Sandwich arbitrage on the market.
Have I Been A Victim of Sandwich Attack?
If you have been a crypto player for a while, you might be interested in finding out if you have been attacked. We released this little kit to help you check.
Put your wallet address in the search box, and you will be able to find out.
Whether or not you are a victim, it’s critical to use protection, like wrapping up your deal. Luckily, the open-source project Flash Bots provides a “Flashbots Protect” tool to protect your transaction from Sandwich arbitrage. All you need to do is some simple Metamask configuration. Please read their quick start for details.
To conclude, if you want to share with your friends about the Sandwich attack, here are the things you could recommend.
- EigenPhi Classroom’s explanation on Sandwich.
- How do we recognize Sandwich?
- EigenPhi’s Sandwich module.
- Our Sandwich arbitrage daily report.
- Our Sandwich victim history checker.
If there is more information you’d like to find out about Sandwich arbitrage, please leave your comment. You can also contact us via the channel below.
Stay Away From Sandwich Arbitrage and Stay Safe!
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