What is MEV Robot?
MEV (Miner Extractable Value) bots are disrupting the crypto market by manipulating the order of transactions on the Ethereum blockchain to profit. These bots can capture profit opportunities by operating before and after key transactions in the DeFi market.
Types and strategies of MEV robots:
- Arbitrage Bot: Take advantage of price differences between decentralized exchanges (DEX) to profit.
- Mezzanine trading bot: buys and sells before and after large trades to make a profit.
- Front-running trading bot: prioritizes trades before large trades to make profits.
- Follow-up trading robot: trade after a large trade to gain profit.
- Flash loan robots: use flash loans to manipulate orders.
{There are actually many other types, I found over 30 different types of MEV robots}
How to avoid MEV robots?
While MEV remains a widespread issue on the Ethereum network, there are several strategies that can help you protect yourself.
- Setting a lower slippage tolerance can reduce the risk of being exploited by MEV, but if the slippage is set too low, it may cause the transaction to fail and the MEV robot may still exploit it.
- Trade in high liquidity pools. Since MEV relies on arbitrage opportunities, larger liquidity pools can reduce the impact of a single trade on the price, making it easier for MEV robots to exploit. However, this may limit your options, especially for new coins or coins with less liquidity.
How do you start protecting yourself?
1. Visit: http://docs.flashbots.net/flashbots-protect/overview
2. Click on “Start setup for Flashbots Protect”, then select “Get protected” and add it to your wallet.
If this method doesn’t work, don’t worry, we have other options.
Protect yourself using alternative methods:
1. Visit: http://cow.fi/mev-blocker
2. Scroll to the bottom of the page and find "Add Mev blocker RPC" and add it to your wallet, or add it manually.
How to avoid MEV on the SOL network?
- Reduce the slippage setting, it is recommended not to exceed 1.5%-2%. Higher slippage increases the risk of being exploited by the MEV robot, making it easier to conduct mezzanine trading.
- Consider using tools with anti-MEV capabilities, such as TG robots like Trojan or Maestro.
I may write another article for the BSC chain later, so stay tuned.
in conclusion
MEV bots quietly steal crypto assets, especially on the Ethereum network, by manipulating the sequence of blockchain transactions. To protect themselves, users can take steps such as reducing slippage tolerance, trading in high-liquidity pools, and using tools like Flashbots Protect or MEV Blocker. In addition, specific tools can effectively prevent MEV attacks on the Solana network. Raising awareness of prevention and taking appropriate protective measures can significantly reduce the risk of asset losses caused by MEV robots.
