Crypto trading bot borrows $200M for a $3 gain
One community member praised the bot saying that "profit is profit" while another said that the event highlights how bad the bear market is. A crypto trading bot programmed to perform arbitrage trades made various complex moves within the Ethereum blockchain, including taking a $200 million flash loan, all to secure a mere $3.24 profit. On June 14, blockchain Analysis firm Arkham Intelligence shared a breakdown of the bot’s movements. According to the firm, the transaction was made by an arbitrage bot that uses flash loans. This morning, $200M worth of DAI was minted and burned by MakerDAO in the same block. It was part of an arbitrage transaction with a net profit of... $3? Why did this happen - and what does this mean? Details below pic.twitter.com/wWLZeC8All — Arkham (@ArkhamIntel) June 14, 2023 The Analysis firm explained that the reason the the DAI amount borrowed was high is because MakerDAO's "DssFlash" contract allows zero-fee borrowing on any a...