Crypto trading bot is racking up profits, big fees with ‘sandwich’ attacks

economictimes.indiatimes.com:

The wallet for the so-called trading bot operator is a play on name of the disgraced former spokesman for the US restaurant chain. In the sandwich maneuver, a trader places on order for a token on a DeFi app. Before the order is executed, a bot can snap up that token on the exchange. That drives up the price of the token on that exchange. After the price has risen, the bot sells the token for a profit. According to data from tracker EigenPhi, the bot was able to make about $1.67 million in two days at a time when yields across DeFi have remained unattractive. The gains sent the total profits made by traders or entities using the strategy to nearly $4 million in the past month, the firm estimated. Sandwich attacks aren’t a new concept in DeFi. The aggressors, using trading bots and algorithms, usually find potential victims by looking at a collection of pending transactions on DeFi exchanges running on blockchains like Ethereum. The bots are programmed to sniff out profitable transactions. The most attractive target usually are transactions involving tokens with low liquidity or large transaction size. In the latest case, the traders favored memecoins like PEPE and APED, which are tokens similar to the better-known one such as Dogecoin that are considered to have little real usage or value.

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But executing the strategy is usually costly. The trader or traders behind jaredfromsubway.eth have spent about