USD 200 Million Instant Loan Withdrawal Robot.
A cryptocurrency trading bot was able to withdraw a $200 million instant loan from the MakerDAO network in a single transaction, according to a recent report by cryptocurrency industry research and valuation firm Arkham.
Due to the size of the loan, more transactions were reviewed and it was found that the money borrowed had been used in several arbitrage transactions, which are transactions that profit from the price disparity between certain commodities or assets in different locations or across multiple trading pairs. These trades made a small profit of $3 all in all.
And by MakerDAO network standards, the crash appears to be acceptable. The network supports instant and fast lending of up to $500 million, but on the condition that the loan is withdrawn and repaid in the same blockchain.
Additionally, based on the data, the bot’s arbitrage operation generated a total profit of 0.019 ETH (the cryptocurrency of the Ethereum network), or $33, at the time of the transaction. A transaction fee of around $28.76 was deducted from the total amount, leaving $1 for the blockmaker in the blockchain. As a result, the trading bot only ended up with a net profit of $3.24.
As this expedition involved huge risks and huge sums of money for so little benefit, it generated a great deal of discussion. Since multi-processing requires time even when using bots, a quick transaction can result in thousands of dollars being lost if unfavorable events occur.
Trading bots have been around for a while, especially in the Bitcoin and foreign exchange (forex) markets. According to the news, the blockchain network was the target of a series of "sandwich attacks" by one of these bots, which generated an astronomical profit of $1 million in one day.
Comments
Post a Comment