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I wonder how these bots perform the shorting. Do they take the modified instruction and increase miner reward to make it more prioritized than the original tran
by est31 6y ago
I wonder how these bots perform the shorting. Do they take the modified instruction and increase miner reward to make it more prioritized than the original transaction? Such a bot would be hard to counter as if you set some reward value, even if it's extremely high, it would take it and increase it by 1. Even if you saw that value yourself and increased it yourself, they could counter your counter by inceasing again, the process continuing until everything is eaten up by miner rewards.
If you have multiple such bots, would they fight over the loot, increasing the reward until it's all given to the miners?
Are there any logs of rejected transactions that existed in the mempool? Is there evidence of such fighting?
- sickygnar 6y agoWell, gas prices are insane right now so no doubt bots are bidding them up. Gas prices hit 250 gwei or so 2 weeks ago. $150 fees for some of these contracts and arbitrage aren't abnormal. Here is a $188 transaction fee - looks like they were trying to "mine" compound from a $5 million flash loan? https://etherscan.io/tx/0x0d5def630cd20a1a24389982e99801e011bc3859293ba664a6823799221f533d https://etherscan.io/tx/0x0d5def630cd20a1a24389982e99801e011...
- iSnow 6y agoThey farmed $4140 before tx fees and interest, so they made about $4k. Not too shabby...
- marcell 6y agoCurious, you seem pretty well informed about Ethereum, blockchain, etc. Do you work in the space?
- iSnow 6y agoWish I were, but I am too old to work in a start-up, and I have family to feed so I won't work for $30k/y. I am just spending all my free time reading up on the stuff - to me, it's the most interesting tech revolution since the early web of the 1990's
- hoytech 6y agoYes to all your questions. See http://frontrun.me/ http://frontrun.me/ for some logs of gas auctions. There is/was also so-called "back-running" where bots spammed many transactions with the same gas price as a target transaction: https://github.com/ethereum/go-ethereum/issues/21350 https://github.com/ethereum/go-ethereum/issues/21350
- est31 6y agoThat's interesting, thank you!
- milchek 6y agoSo, with front-running on Ethereum, am I understanding correctly that what is happening here is that bots are being used to look at buy and sell orders on decentralized exchanges and then sending their own tokens with a slightly higher gas price to get in 'front' of the detected order? What is the point of "back-running?"