MEV Bot Activity by Jaredfromsubway.eth

An MEV bot operated by Jaredfromsubway.eth has been rolling out new arbitrage and sandwich attacks, earning millions of dollars in Ethereum (ETH).

Since August 14, Jared, named after a former Subway spokesperson and convicted sex offender, has seemingly deprecated his old contract address, as reported by MEV tracking site EigenPhi.

“With all this being said, it doesn’t mean Jared has stopped making sandwiches. During the past 2 weeks, we have noticed an emerging MEV contract rampaging with all kinds of new on-chain trade squeezing methods,” the report states.

EigenPhi’s analysis indicates that Jared’s new address was created from the same public/private key pair as his original bot, which generated millions of dollars of ETH within three months of its 2023 launch.

MEV (Maximum Extractable Value) involves reordering transactions to maximize profits when building blocks. Transaction ordering significantly influences the prices users pay on decentralized exchanges like Uniswap, attracting both good faith and malicious actors reordering or excluding transactions.

Jared’s new contact address has processed over 85,000 transactions, generating approximately 765 ETH, valuing just under $2 million at current prices.

EigenPhi also noted an increase in complicated sandwich attacks from Jared, including five-layer and seven-layer strategies that exploit multiple victims simultaneously taking advantage of arbitrage opportunities created by Jared’s bot.

The simplest form of an MEV sandwich attack involves front-running and back-running regular users’ transactions, enhancing pricing for attackers like Jared while deteriorating price execution for average users.

Due to slippage in crypto transactions, Jared can inflate prices, causing users to buy at elevated prices, then sell right after for profit.

“The above example is only the tip of the iceberg. Jared 2.0 would utilize adding liquidity transactions as the front or centerpiece, and removing liquidity transactions as the back piece, combining various transactions in between, creating multiple sandwich attack victims,” EigenPhi explains.