Topic: Types of MEV bots (Read 58 times)

MEV, or miner extractable value, refers to the value that can be extracted from the blockchain by a miner who is able to manipulate the system in their favor. This is done through the use of MEV bots, automated programs that exploit vulnerabilities in the blockchain to make illegal profits. We will explore the different types of MEV bots, how they make profits, and what you can do to protect yourself from these attacks.

Front-running bots: Front-running bots monitor the blockchain for high-value transactions and execute trades ahead of these transactions to profit from price differences. These bots are able to detect when a large trade is about to occur and act quickly to execute a similar trade before the original trade is confirmed. This allows the front-running bot to profit from the price difference that results from the large trade.

Slippage bots: Slippage bots execute large trades that create artificial slippage, which is the difference between the expected price of a trade and the actual price of the trade. These bots exploit the time lag between when a transaction is broadcast to the network and when it is confirmed and added to the blockchain. By executing large trades that cause the price of an asset to move rapidly, slippage bots are able to profit from the resulting price differences.

Double-spend bots: Double-spend bots execute a trade and then immediately reverse it, taking advantage of the time lag between when a transaction is broadcast to the network and when it is confirmed and added to the blockchain. By executing these trades quickly and in large volumes, double-spend bots are able to profit from the price differences that result from the rapid movement of assets.

Liquidity-provider bots: Liquidity-provider bots execute trades that artificially increase the liquidity of a particular asset, allowing them to profit from the resulting price differences. These bots work by executing trades that increase the volume of a particular asset, causing the price to move and creating an opportunity for the liquidity-provider bot to profit from the resulting price difference.