Flashbots, a company that provides software for MEV (Maximal Extractable Value), has reported that profits earned through MEV have more than doubled since the FTX crash. The collapse of Silicon Valley Bank (SVB) has significantly boosted the earnings of validators on Ethereum, with the stablecoin USDC’s loss of peg playing a vital role in this increase.

MEV is the profit validators earn by adding or reordering transactions while creating new blocks. Instead of processing transactions in real-time on-chain, validators can prioritize orders with higher fees to earn a profit, similar to traditional market arbitrage.

According to AZCoin News, after the US regulator shut down SVB, the USDC issuer confirmed that it still had $3.3 billion stuck in the bank. The announcement caused panic among users, with many selling or exchanging their USDC, causing the stablecoin to lose its peg.

At that time, market demand for trading increased, and validators had more opportunities to earn MEV profits. On March 11, Flashbots’ MEV-Boost users earned the highest amount of 7,691 ETH, approximately $13 million.

This figure is almost double the previous record high of 3,928 ETH recorded during the FTX incident on November 9. Although these statistics cannot be directly compared, the daily miner’s profit from mev-geth reached an all-time high of 6,397 ETH in June 2021.

This is the profit of running mev-geth compared to a vanilla mempool mining client. To estimate the difference in payment for validators running mev-boost or not, one could examine the value of the mempool builder submitted (0xa1defa) and the winning block.

One interesting thing is that about once a year, there are days with massive amounts of MEV, such as June 5, 2021 (6,397 ETH profit), June 13, 2022 (6,313 ETH profit), and March 11, 2023 (7,691 ETH payment to mev-boost proposers). During such times, competitive MEV markets and OFAs (on-chain flashbots auction) play an essential role in returning value to users.

On March 12th, MEV profits significantly decreased to normal levels with MEV profits on Flashbots at 2,282 ETH. This was due to Circle’s announcement of compensating any shortfall in USDC reserve and the introduction of a new banking partner, Cross River Bank. As a result, the stablecoin was able to regain its 1:1 USD exchange rate and trading demand began to cool down.

Toni Wahrstätter, an Ethereum researcher, expressed his joy that most of the MEV profits went to validators. “They are not the ones running complex algorithms and engaging in insider trading. They just happen to have the opportunity to earn money while securing the Ethereum network,” he said.

In conclusion, MEV has become an important source of income for validators on Ethereum, with Flashbots playing a crucial role in providing software for these profits. While events like the SVB collapse and USDC’s loss of peg have contributed to MEV profits’ recent surge, competitive MEV markets and OFAs are vital for ensuring economic security during massive tail events.

#ETH #Ethereum #MEV #validator #crypto2023

This article was republished from azcoinnews.com

Flap is thrilled to announce the latest upgrades to our platform, designed to enhance user experience and improve the overall functionality of our ecosystem. In this week's update, we’ve focused on UI improvements, lowered bonding curve milestones, and introduced cutting-edge MEV protection to safeguard our users’ transactions.
1. UI Upgrade: A New Way to Discover Tokens

We’ve completely revamped the homepage, adding four new sections to make token discovery easier for our users:
- Newly Created: Discover the latest meme tokens that have just been launched.
- Graduating: Track tokens nearing their milestones and graduation.
- Listed on PancakeSwap: Find tokens that are now live on PancakeSwap, offering greater liquidity.
- Diamond Badge: Identify top-performing projects with a diamond badge, signifying their high status in the Flap ecosystem.
These categories are designed to simplify your search, whether you're looking for fresh projects or well-established tokens.
2. Lowered Bonding Curve Milestone: Making Launches Easier

Based on user feedback, we’ve made significant changes to the bonding curve, lowering the requirements to list tokens on decentralized exchanges (DEX) like PancakeSwap. Here’s what’s changed:
- The fundraising requirement has been reduced from 30 BNB to just 16 BNB.
- The token release percentage has been increased from 66.7% to 80%, giving users more tokens for their BNB.
This change makes it easier for new projects to launch, while offering investors more opportunities to own meme tokens. Although the initial market cap will be lower, this adjustment gives more users access to promising projects at an earlier stage.
3. MEV Protection: Secure Your Transactions with bloXroute

In our ongoing effort to protect our users, we’ve partnered with bloXroute to introduce MEV (Miner Extractable Value) protection. This feature is designed to prevent bots and miners from manipulating transactions and extracting value from users. You can set it up quickly with the click of a button for seamless protection.
Airdrop Alert: Complete Tasks and Win 250,000 Points!

We’re also excited to announce that the Gate Web3 x Flap Airdrop is now live! From September 12 to September 25, you can complete a series of tasks to share 250,000 points. Here’s how to join:
1. Complete the SNS tasks.
2. Visit Flap and explore the new features.
---
Thank you for your continued support as we work to make Flap the best meme token platform in the ecosystem. We value your feedback and will keep rolling out improvements that make it easier for you to discover, invest in, and launch exciting projects.
Stay tuned for more updates, and don’t miss your chance to participate in our latest airdrop event!
#GateWeb3 #flapdotsh #DeFi #MEV #FLAP

In recent news, it has come to light that there may be malicious Ethereum verifiers who are attacking some MEV Bots transactions in the block, invalidating the MEV Bots transactions and replacing them with their own transactions. The related MEV Bots have reportedly lost about $25 million, and the attacker has become a validator just 18 days ago.

According to the reports, the attacker had prepared the relevant token 18 days ago, and the relevant source of funds was from the privacy protocol Aztec. The block that contains the malicious transactions only contained 8 sandwich bundles, yet the total loss is around $25 million, which is a significant amount. The victims of the attack were reportedly triggered by pairs that were also created and ‘addLiquidity’ by the hacker.

This attack could be the major turning point for the entire MEV ecosystem, and it looks like a well-planned attack. There are a lot of details that need to be examined, and it is unclear whether the attacker was acting alone or with a group of people.

Many experts in the field, such as @peckshield, @BlockSecTeam, @bertcmiller, @samczsun, and @bbbb, have been sharing their thoughts on the attack and its potential impact on the ecosystem. Some experts have suggested that this could be a rogue validator attack as the proposer was also funded from Aztec.

The loss of $25 million is a significant blow to the MEV Bots and their users, and it remains to be seen how the ecosystem will recover from this attack. The attack highlights the need for stronger security measures and the importance of thoroughly examining new validators before granting them access to the network.

Overall, this is a developing story that will likely have significant implications for the MEV ecosystem, and we will continue to monitor the situation as it unfolds.

#MEV #Ethereum #ETH #crypto2023 #azcoinnews

This article was republished from azcoinnews.com