MEV Sandwich Attacks Lead To $60M Being Extracted Via Solana Validator
The Solana (SOL) ecosystem is facing controversy over Maximum Extractable Value (MEV) tactics, particularly Sandwich Attacks. A single Solana validator is reported to have extracted over $60 million through these attacks in one month, using the Solana blockchain to manipulate transactions and profit at the expense of users.
Substantial Losses
DeFi analyst 0xngmi noted that while the $60 million is the profit for the validator, user losses are even greater due to transaction priority fees, or validator bribes. The issue gained attention when Ben, a core developer of Temporal, revealed that the Arsc validator was using a sandwich attack bot to front-run transactions and increase MEV earnings.
This raised concerns about the centralization of MEV, threatening the decentralization aspect of Solana. Ben proposed solutions like whitelisting or blacklisting validators or using a public mempool, though these received criticism for potentially leading to censorship. Coinbase representative Viktor Bunin argued that improving DEX design and slippage parameters would be a better solution.
Transparency Issues
A sandwich attack works by malicious actors manipulating transaction orders, making users pay higher prices while attackers profit. The architecture of Solana, with its fast transaction processing and private mempools, makes it especially susceptible to such attacks. This has raised concerns over the transparency of REV (Real Economic Value) of Solana.
While some argue that sandwich attacks are a small portion of this REV, the majority comes via prioritizing transactions for faster processing. As the debate continues, users can protect themselves by using tools like Helius or choosing chains with built-in MEV protections like MultiversX (EGLD).
Top News
7 months ago
7 months ago
7 months ago
8 months ago
8 months ago
8 months ago
8 months ago
8 months ago
8 months ago
More From The News
Press Releases
Payments
New Payment Limit For Crypto Wallets Scrapped
The recent Anti-Money Laundering re... Read more
Bitcoin
Bitcoin Undergoes Price Correction As International Economies
A significant portion of the crypto... Read more
Join Our Newsletter
Get the latest trends and updates on our crypto community.