A Uniswap user who created a liquidity pool lost more than $700,000 in seconds after an influx of MEV bots, likely due to a configuration error.
The user created the WBTC-CRV liquidity pool on the Uniswap v3 platform. He then deposited $1.56 million worth of Wrapped Bitcoins (WBTC).
In exchange, he received 1.56 million in CRV, worth $850,000 at that time. The transaction attracted the attention of MEV bots, focused on maximizing profits by shuffling transactions in the block.
They tried to exchange CRV for WBTC urgently. One of the bots managed to convert 1.36 million in CRV to 39.01 WBTC, Arkham Intelligence notes. For the priority of the transaction, he paid the validator $527,000. His bonus was about $260.
In September, Alchemix Finance thanked an anonymous MEV bot operator for voluntarily returning $70k, or 43.3 Ethereum (ETH), in arbitrage profits from the Curve Finance exploit.
MEV bot operator has returned 43.3 ETH of profits while operating Curve Finance, a decentralized stablecoin (DEX) exchange.
Alchemix Finance, one of the four protocols directly affected by the Curve incident, confirmed the transaction on Sept. 4. The Miner Extractable Value (MEV) bot operator has returned 43.3 ETH of profits while operating Curve Finance, a decentralized exchange.