TLDR
- A Solana MEV sandwich bot, known as “arsc,” has made around $30 million in profits from arbitrage opportunities in just two months.
- The bot operates multiple wallets, with one serving as a cold storage wallet holding over $19 million, primarily in SOL and USDC.
- Another active wallet gradually converts SOL into USDC and holds positions in Kamino and various liquid staking tokens (LSTs).
- The bot appears to be actively trying to conceal its activities and profits, using various tactics like multiple signers and tippers.
- MEV sandwich bots utilize algorithms to identify and exploit price discrepancies, a practice also seen on the Ethereum network.
A Solana-based MEV sandwich bot, identified by the wallet initial “arsc,” has made headlines for accumulating a staggering $30 million in profits through maximum extractible value (MEV) arbitrage within just two months.
This bot has been strategically exploiting price discrepancies on the Solana network, capitalizing on unsuspecting users’ transactions.
The bot’s operations revolve around multiple wallets, each serving a distinct purpose.
One of the primary wallets, “9973h…zyWp6,” holds over $19 million in total funds, including approximately $17 million worth of Solana tokens (SOL) and $1.1 million in Circle’s USD Coin (USDC) stablecoin.
This wallet appears to function as a cold storage, with minimal activity, suggesting it is a locked-down reserve for the bot’s earnings.
Another wallet, “Ai4zq…VXKKT,” is more actively involved in decentralized finance (DeFi) activities. This wallet gradually converts SOL tokens into USDC through the Jupiter exchange’s dollar-cost averaging service.
Additionally, it holds significant positions in Kamino and various liquid staking tokens (LSTs). This wallet currently holds over $9.9 million in total funds, primarily comprising non-SOL tokens.
Interestingly, the bot operator seems to be making concerted efforts to maintain a low profile and conceal their activities.
A third wallet, “BCbrp…vi58q,” has been identified as the bot’s “main SOL bank,” employing numerous signers and tippers to execute the sandwich attacks.
It seems they don't enjoy the attention, as they've recently gone to great lengths to hide their activities and profits.
BCbrp is now their main "SOL bank" for sandwiches, and they use dozens of signers/tippers.
Stay safe out there, folks. 🫡 pic.twitter.com/RVGFggcGJs
— Ben (@HypoNyms) June 15, 2024
This tactic helps obfuscate the bot’s transactions and makes it more challenging to trace the operator’s activities.
Collectively, these three wallets hold a total of $29.8 million based on current prices, highlighting the significant profits generated by the bot within a relatively short period.
MEV sandwich bots like “arsc” operate by strategically positioning their transactions around a victim’s transaction, effectively “sandwiching” it.
This allows the bot to manipulate prices and profit from the discrepancy. The bot purchases the victim’s tokens at a price lower than the market value and immediately sells them within the same block, pocketing the difference.
These bots rely on sophisticated algorithms to identify and exploit such arbitrage opportunities, capitalizing on the inherent complexities and inefficiencies within blockchain networks.
While MEV sandwich bots are not unique to Solana, their presence and profitability on the network have raised concerns.
Research from MEVBlocker suggests that over $1.38 billion had been extracted from well-intentioned Ethereum users by April 2023 due to similar MEV activities.
