The Benefits of MEVblocker for Trading
MEVblocker is a new service that allows users to backrun their transactions and get paid for it. Learn how this service can benefit trades and why it is important for users to be aware of it.
Martin Köppelmann
Unconditional Basic Income @CirclesUBI, Co-founded Gnosis. Supporting @gnosisDAO @gnosischain, @gnosisSafe, @gnosisguild, @cowswap
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Two user in the same block doing a trade each - one using a regular RPC is getting sandwiched the other using https://t.co/YjgcKWNM5m and actually getting paid for their trade. Let me explain: pic.twitter.com/qwlgyS3XGe
— Martin Köppelmann 🇺🇦 (@koeppelmann) April 5, 2023 -
First, you can find the block here: https://t.co/IxHI0ACWeD
— Martin Köppelmann 🇺🇦 (@koeppelmann) April 5, 2023
Lets first look at 0x5a4a7.. - poor guy, using a regular RPC, getting sandwiched loosing $45.67 on the trade.
Now lets look at user: 0xde0007... selling Keep token for ETH. -
You can see, the tx is classified as "miner" as it was not seen in the network before. This is what other services like flashbot protect offer as well. What is new about MEVblocker is that it does ALLOW searcher to "backrun" your transaction if they pay you. pic.twitter.com/nTIRCvnpM6
— Martin Köppelmann 🇺🇦 (@koeppelmann) April 5, 2023 -
In the status API for this transaction you can see there have been 4 bids to backrun this trasaction: https://t.co/b2R8WSzizP pic.twitter.com/B4PvasWW8w
— Martin Köppelmann 🇺🇦 (@koeppelmann) April 5, 2023 -
The winning bid was transaction: 0x1035e5c482400a287a0883376b13fe694bbb54c1d6c8e0e44a396317fd12e810 which arbed AMMs pools that have been touched by the user and than payed 0.0054 ETH - first to the block builder @builder0x69 pic.twitter.com/6qv0aDco6k
— Martin Köppelmann 🇺🇦 (@koeppelmann) April 5, 2023 -
Finally exactly 90% of that value (minus gas fee) are payed to the user in the 3rd transaction. The remaining 10% are eventually payed to the validator of the block (together with all other bundle payments) to make sure a validator favours a block with the successful backrun.
— Martin Köppelmann 🇺🇦 (@koeppelmann) April 5, 2023