Is anyone safe using DeFi?
A user on
@Uniswap v3 was just sandwiched attacked out of $216k while simply trying to swap $221k USDC to USDT.
Mind you, this was a pool that had over $35m of USDC and USDT it.
This is insane.
How did it happen?
An MEV bot front-ran the tx by swapping all the USDC liquidity out.
After the transaction executed, they put back the liquidity.
The attacker tipped a block builder (bobTheBuilder) $200k and profited $8k from this transaction.
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A few ways to try to avoid this:
1. Reduce slippage tolerance on transactions
2. Don't use Uniswap. Use cowswap or another aggregator - which can provide better execution prevent this malicious MEV
3. Use a custom RPC that doesn't expose your transactions publicly
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What is Uniswap's responsibility here?
We can't live in a world where a user executes a simple swap of $221k in a liquid stablecoin pool and gets rugged.
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P.S. data team
@the_defi_report is cooking. Going deep on MEV to share the economics of various chains from the ground up.
Might not be pretty.
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