The Curious Case of ‘jaredfromsubway.eth’: How an MEV Bot Made Millions with Meme Coin Sandwich Attacks

In the wild world of cryptocurrency, where fortunes can be made and lost in the blink of an eye, a new player has emerged, sparking both fascination and frustration. This week, an enigmatic Maximal Extractable Value (MEV) bot operator, cleverly using the Ethereum Name Service (ENS) domain ‘jaredfromsubway.eth,’ raked in over a million dollars by executing ‘sandwich attacks’ on traders of the latest meme coin sensations. Intrigued? Let’s dive into this juicy crypto story.

Who is ‘jaredfromsubway.eth’ and What Did They Do?

Imagine a digital Robin Hood, but instead of stealing from the rich to give to the poor, this entity profits from the intricacies of decentralized finance (DeFi). According to data from the NFT platform Sealaunch, the wallet associated with ‘jaredfromsubway.eth’ pulled off some impressive feats:

• On April 18th, they pocketed a staggering $950,000.
• April 17th and 19th saw profits of approximately $300,000 and $400,000, respectively.

The name itself is a tongue-in-cheek reference to the popular sandwich chain and its infamous former spokesperson, adding a layer of dark humor to the situation. But the impact is far from funny for those on the receiving end of these attacks.

The Price of Success: A Gas Guzzling Whale

The sheer scale of this operation is mind-boggling. Sealaunch also reported that this single MEV bot accounted for a whopping 7% of all Ethereum gas fees within a 24-hour period between April 18th and 19th. To put that into perspective, imagine one car consuming 7% of all the fuel used in your entire city in a single day!

The Meme Coin Connection: PEPE and WOJAK

Crypto researcher Matt Willemsen shed light on where the bulk of these profits originated: the frenzied trading of two new meme coins, Pepe (PEPE) and Wojak (WOJAK). The bot strategically targeted transactions involving these volatile assets, propelling ‘jaredfromsubway.eth’ to the top of the gas consumption charts for the week.

Decoding the ‘Sandwich Attack’: How Does It Work?

So, how does this ‘sandwich attack’ magic happen? Let’s break it down:

1. The Setup: When you initiate a trade on a decentralized exchange (DEX), your transaction first goes into a waiting area called the mempool. Here, it sits alongside other pending transactions, waiting to be included in the next block on the blockchain.
2. The Attack: The MEV bot monitors the mempool for large buy or sell orders. Spotting an opportunity, it creates two of its own transactions.
3. The First Slice: The bot’s first transaction is set with a higher gas fee, ensuring it gets processed *before* the victim’s transaction. This artificially pushes the price of the token up.
4. The Filling: Your transaction, the unsuspecting ‘filling’ of the sandwich, is then executed at the inflated price.
5. The Second Slice: Finally, the bot’s second transaction, set with a slightly lower gas fee (but still high enough to be included in the same block), sells the tokens it just bought at the higher price, profiting from the price difference.

Think of it like this: you want to buy a popular item online. A reseller sees your order pending and quickly buys up all the available stock at the current price. Then, they immediately offer it back to you at a higher price, knowing you’re already committed to the purchase. Sneaky, right?

The Cost of Sandwiches: Gas Fees and Gains

Thomas Mattimore, Head of Platform at Reserve Protocol, revealed the significant investment behind these gains. ‘jaredfromsubway.eth’ spent an estimated $1.2 million on gas fees between April 18th and 19th alone to execute these attacks. However, the profits far outweighed the costs.

A Whale’s Spending Habits: Millions in Gas

Sealaunch’s data further highlights the long-term activity of this bot, revealing over $7 million spent on gas across approximately 180,000 transactions. This paints a picture of a highly active and sophisticated operation.

Reactions and Ramifications: Amusement vs. Anger

The emergence of ‘jaredfromsubway.eth’ has been met with a mix of reactions within the crypto community:

• Amusement: Some find the clever ENS domain name and the audacity of the operation entertaining. It’s a stark reminder of the sometimes-cutthroat nature of DeFi.
• Frustration and Anger: Others, particularly those who have been victimized by these attacks, express strong disapproval. One analyst at Glassnode questioned the overall ‘value’ contributed by such activities.
• Concern: The ease with which such exploits can be carried out raises concerns about the fairness and security of decentralized exchanges.

The Bigger Picture: MEV and Its Impact

The activities of ‘jaredfromsubway.eth’ are just one example of the broader phenomenon of Maximal Extractable Value (MEV). According to MEV Blocker, a staggering $1.38 billion has been extracted from Ethereum users through MEV tactics, targeting everything from token swaps to NFT minting.

Fighting Back: MEV Protection is Emerging

The good news is that awareness of MEV is growing, and solutions are being developed. Several MEV blocker projects have emerged, aiming to protect Ethereum users from the financial sting of sandwich attacks. These tools work by:

• Hiding transactions: Preventing MEV bots from seeing your pending transactions in the mempool.
• Private relays: Sending your transactions directly to miners, bypassing the public mempool.
• Order routing optimization: Finding the most efficient and secure routes for your trades.

Key Takeaways and Actionable Insights

• Be Aware of MEV: Understand that MEV exists and can impact your trades on decentralized exchanges.
• Consider MEV Protection Tools: Explore and utilize MEV blocker services to safeguard your transactions.
• Trade Wisely: Exercise caution when trading highly volatile assets like new meme coins, where MEV bots are often more active.
• Educate Yourself: Stay informed about the latest developments in DeFi security and MEV mitigation strategies.

The Sandwich Saga Continues…

The story of ‘jaredfromsubway.eth’ serves as a compelling illustration of the opportunities and challenges within the DeFi space. While some may see the bot operator as a shrewd player capitalizing on market inefficiencies, others view such actions as exploitative. Regardless of your perspective, it highlights the ongoing need for robust security measures and a greater understanding of the intricate mechanics of decentralized finance. As the crypto landscape evolves, expect to see more innovation in both MEV extraction and protection, shaping the future of how we interact with blockchain technology.