Overview

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An arbitrage bot flash loaned $200 million worth of the dai stablecoin (DAI) from MakerDAO on Wednesday, making a $3.24 profit after transaction fees. The bot took According to the report, the bot strategically exploited MakerDAO’s ‘DssFlash’ contract by borrowing a substantial amount of 200 million DAI. Taking advantage of Flash loans are a unique feature in cryptocurrency, as they enable borrowing and repayment within a single transaction without collateral. In this case, the arbitrage bot capitalized on An arbitrage bot flash loaned $200 million worth of DAI from MakerDAO, making a $3.24 profit after transaction fees. The bot took advantage of MakerDAO’s ‘DssFlash’ contract, which Key takeaways: An arbitrage bot exploited MakerDAO’s ‘DssFlash’ contract, generating a $200 million flash loan for a profit of $3. A crypto trading bot programmed to perform arbitrage trades made various complex moves within the Ethereum blockchainincluding taking a $200 million flash loan The arbitrage bot, used to take advantage of price discrepancies on the market, exploited MakerDAO’s ‘DssFlash’ contract for zero-fee borrowing of its DAI. Utilizing the obtained WETH, the bot promptly purchased Threshold Network (T) on Curve and sold it on Balancer. tldr; An arbitrage bot flash loaned $200 million worth of DAI from MakerDAO, making a $3.24 profit after transaction fees. The bot borrowed 200 million DAI tokens and supplied them to the

Bot Attack MakerDAO Flash Loan: $200 Million for a Meager $3 Profit?

Was it worth it? An arbitrage bot flash loaned $200 million worth of the dai stablecoin (DAI) from MakerDAO on Wednesday, making a $3.24 profit after transaction fees. Yes, you read that right: $3.24.

How the Bot Exploited MakerDAO's 'DssFlash' Contract

The bot took advantage of MakerDAO’s ‘DssFlash’ contract, which allows for zero-fee borrowing of its DAI. According to the report, the bot strategically exploited MakerDAO’s ‘DssFlash’ contract by borrowing a substantial amount of 200 million DAI. This raised eyebrows across the DeFi community. The arbitrage bot, used to take advantage of price discrepancies on the market, exploited MakerDAO’s ‘DssFlash’ contract for zero-fee borrowing of its DAI.

Flash Loans: A DeFi Oddity

Taking advantage of Flash loans are a unique feature in cryptocurrency, as they enable borrowing and repayment within a single transaction without collateral. In this case, the arbitrage bot capitalized on this, but the outcome was surprisingly small. Key takeaways: An arbitrage bot exploited MakerDAO’s ‘DssFlash’ contract, generating a $200 million flash loan for a profit of $3.

The Bot's Strategy: WETH, Curve, and Balancer

Utilizing the obtained WETH, the bot promptly purchased Threshold Network (T) on Curve and sold it on Balancer. A crypto trading bot programmed to perform arbitrage trades made various complex moves within the Ethereum blockchain including taking a $200 million flash loan.

Why Such a Small Profit?

The incident highlights both the power and the potential risks associated with flash loans. The bot borrowed 200 million DAI tokens and supplied them to the... well, a series of transactions resulting in a tiny profit. While the transaction itself was technically successful, the minuscule gain raises questions about the efficiency and cost-effectiveness of such large-scale flash loan arbitrage strategies. An arbitrage bot flash loaned $200 million worth of DAI from MakerDAO, making a $3.24 profit after transaction fees.

tldr;

tldr; An arbitrage bot flash loaned $200 million worth of DAI from MakerDAO, making a $3.24 profit after transaction fees.