SNEAK PEEK
- Record-breaking MEV rewards resulted from a Curve platform exploit.
- Bots front-run transactions, leading to significant miner payouts.
- MEV bots generate revenue by monitoring potential liquidations.
On an extraordinary day in Ethereum’s history, Miner Extractable Value (MEV) rewards hit an all-time high. This was revealed by Ethereum’s core developer, known by the moniker Eric.eth. He unveiled that four Ethereum blocks achieved unprecedented MEV rewards. Besides, these blocks included slots 6,992,273, 6,993,342, 6,992,050, and 6,993,346, gaining 584 ETH, 345 ETH, 247 ETH, and 51 ETH, respectively.
Today has produced some of the largest MEV reward blocks in Ethereum’s history.
Slot 6,992,273: 584 ETH
Slot 6,993,342: 345 ETH
Slot 6,992,050: 247 ETH
Slot 6,993,346: 51 ETH— eric.eth (@econoar) July 30, 2023
According to reports, the record-breaking rewards resulted from an exploit on the Curve platform. The underlying mechanics were fascinating. However, in simple terms, a bot identified an impending hack in the mempool, copied the transaction, and proceeded to front-run it.
Consequently, this led to massive payouts to the block producer. The bot rewarded the miner with significant ETH, guaranteeing a frontrunner position. As a result, some of the most significant MEV rewards ever seen in Ethereum’s history were experienced.
Hacks/exploits occurring on curve.
A bot notices an incoming hack in the mempool, reproduces the tx and front runs it.
To do so they pay the block producer a lot of ETH to be front of the line.
— eric.eth (@econoar) July 30, 2023
Significantly, it’s important to note that MEV bots are particularly adept at generating revenue. Besides reordering and inserting transactions in an ordinary block, these bots also monitor for potential liquidations. They are known to front-run these transactions, buying the liquidated assets at a discounted rate.
Moreover, to ensure smooth execution, validators use a relay. This tool outsources their block production to MEV bots, specialists in generating this extra income. The validator then receives a cut from the block reward, which has hit record highs in recent hours. Per the news, the highest recorded MEV bot block reward reached a whopping 584.05 ETH, valued at around $1 million, as confirmed by Beaconcha.in.
However, this lucrative practice is not without controversy. The funds used to pay these significant MEV rewards are essentially hacked, raising severe moral and ethical questions about the legitimacy of the process. Thus, while Ethereum continues to break records, the murky morality of MEV rewards and implications hangs like a shadow over the platform’s successes.
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- Source: https://investorbites.com/ethereum-witnesses-record-breaking-mev-rewards-following-a-major-curve-exploit/
