The Rise of 'arsc” MEV Sandwich Bot on Solana

Over the past few months, an infamous Solana MEV Sandwich Bot called “arsc” has emerged. This bot has been able to extract $30 million from users

Over the last few months, an infamous Solana MEV Sandwich Bot called “arsc” has emerged. This bot has managed to extract $30 million from users via MEV attacks, sparking a lot of debate within the Solana community.

MEV arbitrage has attracted a lot of controversy within the crypto community. While some people see it as a standard trading practice, others regard it as unfair and detrimental to the ethical culture of decentralized systems.

In a recent post, Ben Coverston, the founder of MRGN Research, highlighted the actions of the “arsc” bot. He pointed out that this bot has been careful not to draw attention to itself while earning high profits on the Solana network. The bot operates through several major wallets, each performing different roles in its complex management system.

MEV Sandwich Attacks

In the MEV sandwich attack, the attacker places their transactions before and after a victim’s transaction to capture MEV. The attacker first acquires the victim’s token at a cheaper price before the victim trades and then sells the token at a higher price within the same block. This type of attack is common in DeFi applications because these systems include transaction orders that can be manipulated.

The “arsc” bot is known to perform sandwich attacks on large DeFi token swaps, aiming to maximize profits. It continuously monitors the Solana mempool, searching for valuable transactions to front-run and back-run. This activity generates a significant portion of the bot’s overall revenue.

3 Key Wallets Linked to “arsc” Bot

The “arsc” bot is connected to three main wallets, each serving a specific purpose in the bot’s operation. These wallets are used to store funds, perform DeFi operations, and carry out sandwich attacks.

Cold Storage Wallet

One of the leading wallets linked with the “arsc” bot is “9973h…zyWp6.” This wallet appears to be mainly used as a cold storage wallet by the bot. It currently holds more than $19 million, of which $17 million is in SOL tokens and $1.1 million is in Circle’s USD Coin (USDC). Its behavior appears to be that of a highly secure wallet that is rarely accessed, similar to a cold storage device.

DeFi Wallet

Another sizable wallet, “Ai4zq…VXKKT,” is actively engaged in DeFi operations. This wallet has over $9.9 million, mainly in non-SOL tokens, and continues trading activities without interruption. It slowly swaps SOL for USDC and holds significant amounts of different liquidity staking tokens (LSTs) and decentralized applications, such as Kamino.

Main SOL Bank Wallet

The third wallet, “BCbrp…vi58q,” is considered the “main SOL bank” for the bot, as the bot uses many signers and tippers for sandwich attacks. This wallet has a complex structure, and increased activity indicates that this bot operates continuously and covers up its activity.

The “arsc” bot’s operation has severe consequences for Solana and its users. Overall, MEV sandwiches can have negative consequences for users and shed light on weaknesses in the network. Even though such activities are not unique to Solana and have been witnessed on other blockchains such as Ethereum, the scale and complexity of the “arsc” bot are quite remarkable.

Solana Network Handles the Issue

Like other blockchain networks, the Solana network is advancing in addressing issues such as MEV arbitrage. Although the search results do not contain specific actions implemented by Solana to address the MEV arbitrage problem, it is evident that the network recognizes bots such as “arsc” and their impact.

Various approaches can be used to address the impact of MEV arbitrage on blockchain networks. These approaches include better transaction prioritization, increased transparency, and ethical trading practices.

Furthermore, conversations about MEV within online communities and academic studies can help improve the protocol and prevent users from being exploited.

Conclusion

The story of the “arsc” bot’s appearance on Solana is another episode in the security fight between blockchain projects and experienced hackers. Although it is fascinating that the bot has managed to make $30 million in a relatively short period of time, it also raises concerns regarding the need to improve things within decentralized finance and be much more vigilant. Solving these issues will become necessary as the ecosystem advances to ensure that users’ confidence and the networks’ reliability remain intact.

News source：https://www.kdj.com/cryptocurrencies-news/articles/rise-arsc-mev-sandwich-bot-solana.html

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