DeFi Tx Digest 2022-09-23: Following the Hacker of Wintermute, and 2 New Kinds of MEV
Hi guys. Events like the hacking of Wintermute and their impact will be here to stay for a considerable amount of time, unfortunately. So do new types of MEV, accompanying all kinds of new DeFi products and protocols.
To discover the wisdom of DeFi, EigenPhi’s mission is to reveal legit earning strategies, i.e., new MEVs, and expose hidden risks, such as Wintermute’s hacking. Approaches to achieving these goals must start by dissecting the transaction’s structures and making them easier to understand. That’s why, starting today, we are transforming the DeFi Daily Digest to DeFi Tx Digest, whose purpose is to guide you through breaking events with thorough anatomies of related asset flows.
Follow the Hacker, Follow the Money
The hacker of Wintermute might not have yet invested their stealing into nightclubs or laundromats. But they do convert illegal income into altcoins. Please read our 2 Twitter threads here.
The first thread unveils the transferring to 3crv.
The second thread shows Ep 2 of the hacking, during which the attacker created several new tokens, including Wintermute Exploiter Inu.
Done following the money, let’s take a look at the new MEVs.
2 Arbs in 1 Transaction and 3 Victims in 1 Sandwich
The post-merge era brings something unseen. Like this sandwich preyed on 3 victims. Its occurrence comes down to the MEV Boost project of Flashbots. In Searching Post-Merge on Flashbots’ website, one of the key takeaways is:
the algorithm optimizes for overall profit. Bundles are still included in the block atomically, but non-bundle transactions may now be included between bundles.
Here is the detail.
The next MEV’s searcher is innovative, embedding 2 arbitrages into one transaction.
That’s it for our first DeFi Tx Digest. If you find any transactions interesting or awesome, don’t hesitate to share them with us.
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You can also download and read our 2022 Mid-Year Sandwich MEV report here. And please let us know what you think via the channels below: