๐ Demystifying MEV Bots: Your Guide to Self-Protection ๐ก๏ธ
Discover how to safeguard your assets on the #blockchain in this very article.
๐ A Brief Look at MEV Bots ๐ค
#MEVbots are automated programs in blockchain networks that exploit opportunities to maximize profits by manipulating transaction orders. They can:
- Front-run high-value transactions. โฉ๐ฐ
- Back-run existing transactions. โช๐
- Execute sandwich attacks. ๐ฅช๐
They are considered dangerous because they can negatively impact users by:
- Increasing transaction fees. ๐ธ๐ฅ
- Unfairly profiting at the expense of others. ๐ก๐ฐ
- Manipulating #DeFi protocols. ๐ฆ๐ง
However, efforts are ongoing to mitigate their impact on blockchain networks and make transactions more fair and secure. ๐๐ก๏ธ
๐ Understanding Flashbots:
Flashbots is an initiative created to address the issue of MEV in blockchain networks, particularly Ethereum. Flashbots aims to make transactions more transparent and fair by allowing users to submit transactions directly to miners. ๐๐
๐ผ How to Protect Your Transactions with Flashbots: ๐ก๏ธ
1. Click your RPC endpoint at the top of MetaMask. By default, it says โEthereum Mainnet.โ
2. Click โAdd networkโ
3. Click โAdd a network manuallyโ
4. Add the following details:
Network Name: Flashbots Protect (Mainnet)
New RPC URL:ย https://rpc.flashbots.net
ChainID: 1
Currency Symbol: ETH
5. Scroll to the bottom and click โSaveโ
6. Select the Flashbots Protect RPC from the dropdown list whenever you want to switch.
๐ Advantages of Flashbots:
Flashbots allows users to interact directly with miners, reducing the opacity and potential manipulation found in the public mempool. ๐ค๐๏ธ
Transactions are ordered based on their economic value and not manipulated by MEV bots, ensuring a fairer transaction processing system. ๐ฐ๐
By offering a separate transaction pool, Flashbots mitigates the risk of MEV extraction, benefiting both regular users and DeFi participants. ๐โโ๏ธ๐ก๏ธ