A Uniswap V3 User Loses $700,000 in MEV-Related Transaction
A Uniswap V3 user recently suffered a loss of over $700,000 in just 12 seconds due to a transaction related to Miner Extractable Value (MEV). The user mistakenly confused the value of the Curve DAO token (CRV) with USD and added $1.56 million worth of wrapped BTC to the liquidity pool. As a result, they received 1.56 million CRV, which was only worth around $850,000 at the time.
MEV Bots Exploit the Situation
MEV bots quickly seized the opportunity to exploit this arbitrage situation. However, even the most successful bot was only able to make a profit of approximately $260. This was because it had to pay a bribe of $527,000 to validators in order to prioritize its transaction and outpace other bots attempting to frontrun it. According to blockchain analytics firm Arkham, this outcome was described as “tough luck.”
Common Mistakes in Crypto Transactions
Mistakes like these, often referred to as “fat finger” errors, are not uncommon in the crypto world. In a similar incident last month, a user exchanged over $130,000 worth of one stablecoin (USDR) for $0 worth of another stablecoin (USDC).
Hot Take: Caution and Attention are Crucial in Crypto Trading
This unfortunate incident serves as a reminder that caution and attention are crucial when engaging in crypto trading. It is important to double-check and understand the values and tokens involved in transactions before proceeding. Mistakes can be costly and irreversible in the fast-paced world of cryptocurrency.
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