Strategy Playbook: Mastering 2023's Pioneering DeFi Trading Tactics
From MEV Redistribution to Synthetic Token Mastery: A Look at This Year's Pioneering Strategies
In 2023, traders reshaped the landscape of smart trading with innovative strategies, from an MEV Blocker funneling 90% of backrun profits to users to a bot generating $3,098 from synthetic token arbitrage, showcasing the high-return arbitrage and strategic liquidity management.
Innovative Liquidation and Arbitrage Techniques
A liquidation strategy capitalized on the CRV price fluctuation during the creation of Aave's $1.6 million bad debt, culminating in a staggering $1 million profit.
The Shanghai upgrade was expected to have a great impact on Liquid Staking Derivatives (LSD), resulting in increased trading volume and MEV opportunities, particularly in arbitrage.
A bot achieved a 100x return by flash-loaning USDC and conducting a series of mints, swaps, and burns across multiple DeFi protocols, resulting in a profit of $3K.
By autonomously minting and burning five different synthetic tokens, a bot generated a profit of $3,098 with minimal gas fees.
Advancements in MEV Redistribution
With Flashbots' MEV redistribution solution, users share 90% of bundle rewards from arbitrage opportunities as a refund from the builder.
Wallchain's arbitrage redistribution mechanism integrates user trades, back-run arbitrage, and refunds into a single transaction, sharing profits with traders and protocols.
Leveraging MEV-Share’s refund mechanism, a bot earned $175K in 8 minutes by backrunning order flow for the $FCKIT token.
Refunding 90% of the profit generated from backrunning opportunities to the users, an MEV blocker protected them from attacks.
Manipulative Tactics:
By manipulating token prices through a series of well-timed transactions, the bot Jaredfromsubway.eth earned $6.3 million in three months using a sandwich attack strategy.
A cross-chain arbitrage bot exploited BANANA-USDC pair discrepancies for $150 in one day, proving that time is not friendly for cross-chain transactions.
A searcher made $27K using an idle contract and flash loans to manipulate the cDAI contract and Curve.fi’s liquidity pool.
Liquidity Management:
By adding and removing liquidity, bundling user swaps, and utilizing virtual contracts, a Just-In-Time (JIT) MEV bot on Uniswap V3 manipulated transactions for a $285.5 profit.
A market maker employed a strategy to rebalance liquidity in a Uniswap V3 pool, who swapped USDC for USDT via 1inch to maximize fee revenues, totaling $9.4 million.
From sophisticated liquidation tactics to inventive MEV redistribution mechanisms, these strategies demonstrate the complex interplay of technology and finance and pave the way for future innovations in DeFi trading. Stay informed by subscribing to our channel.
2023 Annual Review Series
Wild Swings and Whip Lashings: 2023's Unforgettable Impact on DeFi in These Research
The 5 Most Popular Strategy Analyses Among Our YouTube Viewers: From 290x ROI To $29K Profit
MEV Spotlight: Unveiling the Tactics and Opportunities in MEV Arbitrage
Special Feature: Behind the Blocks - Navigating the Silent Power Shifts in the MEV Supply Chain
Blueprint Conversations of DeFi's Future: Profits, Protocols, and Power Dynamics Unveiled
Crypto Capers: Exposing High-Stakes Exploits and Advanced Defenses
Tomorrow, we'll be sharing the comprehensive annual review for 2023!
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