DeFi

Solana users pay millions to prevent bots from attacking their transactions – DL News

Published

9 months ago

8 May, 2024

Solana users pay millions to prevent bots from attacking their transactions – DL News

Sandwich robots are wreaking havoc on Solana.
Users have turned to infrastructure company MEV Jito to help protect them.
The Solana Foundation takes a strong stance against those who maliciously target user transactions.

Solana’s memecoin frenzy and wave of token airdrops have attracted more users, pushing trading volume on the network to unprecedented levels in recent months.

But the increase in trade poses a big problem.

People involved in running the software that helps process transactions have a greater incentive to run bots that rearrange transactions for profit — a practice known in crypto circles as MEV, or maximum extractable value.

One of the most common types of MEV is the sandwich attack. Bots conduct sandwich attacks by scanning Solana for users purchasing a token, then jumping the queue and placing a large order in front of them, thereby increasing the price of the token.

Once the victim’s transaction is processed, further increasing the price, the bot sells the tokens at a new, higher price.

“The sandwich is extremely profitable but terrible for users and for the long-term success of the network,” said Jito Network contributor Lucas Bruder. DL News. Jito is a Solana MEV infrastructure company.

Jito’s answer to sandwich bots is to charge users a small tip, at least around $0.04 per transaction under normal network conditions, for processing their transactions privately.

Once a user pays a small tip to Jito to execute their transaction, their transaction is included in a private package that is processed through a Jito validator. Validators are software instances that process transitions on Solana.

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This means that these malicious MEV bots will not be able to see these transactions on the network before they are processed, protecting users from sandwich attacks.

Jito’s solution proves popular. Over the past week, users paid $9.3 million value of SOL in advice to protect their exchanges. And if Solana’s trading volume increases, Jito could earn even more.

What is a “good” MEV?

Bruder said that in addition to individual users protecting their trades, part of Jito’s increased usage comes because arbitrage traders have more opportunities for profitable trades due to the increase in Solana trading volume.

“Arbitrage and other forms of MEV, such as DeFi liquidations, can be considered ‘good’ MEVs as they help maintain orderly and efficient markets,” Bruder said.

Arbitrage traders take advantage of price differences that arise between exchanges to make a small profit. This helps maintain accurate pricing and ensures Solana users get fairer prices when transacting.

This is not a new problem

Sandwich robots are not unique to Solana. On Ethereum and other public blockchains, these robots target user professions.

Users can switch to custom RPCs to avoid being sandwiched. An RPC – or Remote Procedure Call – is a type of computer server that allows users to send transactions to different blockchains.

But setting up a custom RPC can be difficult, especially for the average user. Jito’s solution is integrated with popular trading platforms such as the browser application for Jupiter Aggregator and several major wallets. For most users, paying a small fee is a more convenient and readily available way to avoid sandwich bots.

Combating sandwich bots on Solana is also a more pressing issue than on other networks like Ethereum. This is because bots can target a higher proportion of transactions on Solana due to the network’s lower transaction fees.

The fact that much of Solana’s trading activity involves memecoins, assets that typically have low levels of liquidity, has only compounded the problem. Assets with low liquidity experience greater price fluctuations when traded, creating more opportunities for sandwich robots.

Additionally, Bruder said, the Solana community is trying to achieve social consensus – a process by which individuals agree on a change that will be made to a blockchain – to avoid supporting those who target users with sandwich attacks. “This reveals which actors are aligned with Solana and which are not,” he said.

Eliminate Bad Actors

The situation is being taken seriously at the highest levels.

“Operators engaging in malicious activity such as…sandwich attack transactions or otherwise harming Solana users will not be tolerated,” said Tim Garcia, head of validator relations at the Solana Foundation, in a press release. Tuesday article in Discord from the developers of Solana, a messaging app.

The Solana Foundation, a nonprofit organization dedicated to the decentralization, adoption, and security of Solana, runs a validator delegation program. Those interested in running a validator can seek help from the foundation to cover their costs and ensure they can run a validator profitably.

Garcia said validators that maliciously target transactions will be “immediately and permanently removed” from the program. “Coercive measures will begin in the next 24 hours,” he said.

Tim Craig is a DeFi correspondent at DL News. Do you have any advice? Send him an email to tim@dlnews.com.

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Related Topics:crypto trading jito solana

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DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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