DeFi Daily Digest 2022-08-04: More Hackings, And More Bullish Bet from Bloomberg.
Again, Solana was in focus for yet another bad reason. And Bloomberg is bullish on the global adoption of Ethereum, which might be regarded as a commodity by CFTC.
Regulation
Bitcoin and Ether will be regulated as commodities by CFTC if a new Senate bill is passed.
The legislation clarifies that bitcoin and ether are classified as commodities, as opposed to securities, which would place them under the control of the Securities and Exchange Commission (SEC).
Safety
“White hat” returned $9 million to Nomad. Do you think the searchers should return their arb earnings following the hack? Vote via this tweet:
Market
According to Bloomberg's report titled ‘Booms, Busts and Bitcoin’ published on August 3, the long-anticipated Merge update is set to act as an event catalyst possibly transforming Ethereum into ‘a global institutional-grade asset.’
L1
Vitalik: ERC4337 signature aggregation can save data space by improving compression (especially in rollups).
Quench Your Craving Around MEV in the Market
What were the top arbitrages of yesterday?
Which sandwich attacks made the biggest victim?
Which tokens and liquidity pools provide opportunities for searchers?
What’s the overall trend regarding MEV in the market?
To help you answer these questions, we have highlighted key takeaways about yesterday’s arbitrage and frontrunning in our Arbitrage Daily Report and Sandwich Arbitrages Daily Report.
A nearly $39K loss in a 🥪 might be the record heaviest one yesterday. Its profits of $15,577 made this 🥪 the top trx of the day. Its cost, which was 1.5x higher than the profit, also drove it the most expensive 🥪 of the day.
Let's see how this 🥪 was cooked:
The 😈 found the 😢 trying to swap $USDC for $WETH and soon used $WETH as collateral to borrow 4,297 $WETH from AAVE. The borrowed 💰 with another 1,250 $WETH was then used to push up the exchange rate of $WETH/$USDC on Uni V3.
Consequently, the 😢 had to pay more for $USDC. The 😈 got 1,260 $WETH back through a reversed transaction and generously paid 14.59 $WETH to the miner 🔨.
The trading volume of the 🥪 above reached $19M. In another big 🥪 with $24M trading volume, the 😈 only made $1,549 at a cost of $2,297. However, this was only one of the five 🥪s for the 😢 who suffered in the last 7 days. In total, the 😢 lost $36K.
These two profitable arbs also deserve mention:
#MEV 🤖 made $12,033 from only $8.02 through 🔺 #arbitrage, using ($BONE, $WETH, $SHIB).
#MEV 🤖 made $2,900 from only $8.23 through 🔺 #arbitrage, using ($BONE, $WETH, $SHIB).
Arbitrages like the two arbs above were active in swapping $BONE for other tokens. A fair reason for this may be the surge in $BONE's price at 4:00 pm UTC. Following this, a $BONE/$WETH Liquidity Pool became one of the hottest LPs of the day.
In general, though some large-scale transactions were completed, the overall trading volume on Ethereum greatly contracted yesterday.
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