Jared could steal millions of dollars on deFi attacks in 2023
Jared 2.0 MEV bot has received a major update and is back for more sophisticated attacks
The ‘jaredfromsubway’ maximum extractable value (MEV) bot has received an update and can now perform more sophisticated sandwich attacks against deFi protocols.
What Are the Dangers of the New ‘jaredfromsubway’ MEV Bot?
This bot was first active in 2023 and has made millions of dollars mainly through cryptocurrency arbitrage and multi-layered or so-called sandwich attacks.
“jaredfromsubway.eth” MEV bot has been updated and has been showing more advanced layered attacks using new tactics for two weeks now.
It essentially masks its transactions before and after the victim’s transactions, placing them in the same blockchain to manipulate exchange rates in the Uniswap V3 pool.
Thus it makes the victim pay, who uses the block for the transaction by calculating and injecting fake volatility into it, and takes the difference.
Not only does this allow the bot to make money, but it also helps disguise its transactions from others, making it problematic to track.
“Jared 2.0 would use adding liquidity transactions as the front piece and/or the centerpiece and removing liquidity transactions as the back piece,” EigenPhi wrote, a resource tracking the new bot’s activity.
What Losses Has the Updated ‘jaredfromsubway’ MEV bot Already Caused?
According to EigenPhi, Jared 2.0 has shown variable activity, starting on August 1, withdrawing $2.2 million to other bots or traders over the aftermath.
After that, it slowed down until August 7 and stopped until August 14, but during the last days of the month, it showed the highest activity with a sandwich attack volume of over $17 billion.
The crypto sector is already taking action, such as ParaSwap launching a protocol that should be immune to MEVs.
Conclusions
Although Web3’s technology is inherently secure at its core, as it was designed with this in mind, its technology is still young and requires additional engineering efforts and user attention.
Hopefully, the new version of the bot will not cause problems in crypto for long, and key players will quickly find and implement solutions to make its use useless.
