A game that was worth the candle? – THE bots are ubiquitous in thecrypto ecosystem. The latter use all sorts of strategies that are more or less profitable for the network and their operators.
There are no small profits
Bots are at the heart of the Ethereum ecosystem. These are used in various applications. For example, bots have the task of monitoring decentralized lending protocols in order to ensure the liquidation of loans faulty so as not to endanger the system. Others are active in the field of arbitrations and allow price homogeneity between the different trading platforms.
However, in some cases, these bots have behaviors that are surprising to say the least. Indeed, on June 14, Arkham Intelligence teams detected a transaction in which a bot borrowed $200 million in DAI to make a profit of… 3 dollars.
In practice, this transaction emanates from a arbitrage bot. This one detected a price difference between two pools and tried to rebalance the situation while taking a profit.
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The course of the maneuver
For this, a flashloan $200 million has been contracted in DAI through the MakerDAO protocol. A colossal amount which was made possible in particular by the zero fee policy applied by MakerDAO on its DssFlash contract.
After that, the bot deposited the funds on the Aave protocol for borrow 2,350 ETH. These ETH were later used to buy the Treshold Network token on Curve to resell it on Balancer. Once the sale was finalized, the bot repaid its loan on Aave, recovered its DAI deposit and repaid the flashloan DAI.
In parallel, the bot also pocketed a comfortable profit of 33 dollars. And again, 33 dollars not including fees. In effect, fees deductedthere is only left $3.24 profit.
Obviously, although this situation may be amusing from the outside, it is still a profitable strategy. Indeed, these bots are programmed to go to the end of arbitrations if they are profitable. Whether it’s a few dollars or several thousand, there are no small profits. Even less for a bot that runs 24/7 and who can carry out maneuvers with a few dollars of profit several times a day.
Indeed, some bots can generate hundreds of thousands of dollars. One in particular was detected in May. This one collected $34 million profit in 3 months.
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