My fellow retards,
MEV, or Miner Extractable Value, is a hidden tax on Ethereum users. Most have no fucking idea that they are prey. Those are the worst types of attacks, ones where you are the victim and don’t realize it because you continue to be victimized over and over again.
https://etherscan.io/tx/0x65a2d31a0a695887014a97f9e9afd9e0659100380ecefb3080480c300d2aec3b
Flash bots working in conjunction with miners use private tx to secure guaranteed arbitrage opportunities. These transactions are never broadcast to the network. Instead it’s an insiders game. If you have a relationship with a miner, you pay them out of band, or share some of the upside of your arb, and they will include your tx in the next block without tipping off the details of your nefarious activities to all those watching the mem pool.
The Phonon community has been getting abused by arb bots. This is mainly due to the fact that there is a highly liquid pool between PHONON and a stablecoin known as FRAX. The problem is that when a user wants to buy or sell phonon with an aggregator such as 1inch of matcha, these tools are not picking up the frax pool. Thus they are executing trades at a worse rate and an arb bot can come in to front run the tx and pick up the difference.
This is a few dollars here and there. Not millions per trade, but what is incredible is that for the first time in human history (other than god-tier cheater Madoff), EVERY SINGLE TRANSACTION one of these bots makes is profitable. It is either profitable, or it doesn’t execute.
Imagine a trader on wall street who had a perfect 100% on their trades. Their trades either put money in their account, or it throws an exception and never executes.
This is a crazy new world we live in.
One cool factor…in the context of a PHONON dex, this kind of arb isn’t possible. When a transaction is truly p2p, there’s no insider with the ability to front run. The transaction exists entirely in an encrypted tunnel. Yet another reason to move away from these vampiric massive contract/honeypots and into more p2p architectures.
Phonon DAO is building the best one the world has ever seen. Join today.
Tips to phonongod.eth will be invested in bounties that advance the Phonon project.
Hatemail to phonongod@protonmail.com will be scathingly considered.
Targets for the marketcap of PHONON DAO remain:
$1b by Q2 2022, $12b by EOY.
On the high end, $300b marketcap in 3 years.