The second leading cryptocurrency by market cap Ethereum [ETH] might be susceptible to frontrunners consistent with Dan Robinson, a renowned researcher partner with the cryptocurrency-asset investment company Paradigm.
Within an official web-blog post, Robinson added that the design of Ethereum’s mempool, or a group of unconfirmed transactions, is where the vulnerability lies. He added that arbitrage bots monitor pending transactions within the Ethereum mempool and plan to exploit profitable opportunities created by them.
Arbitrage bots typically search for specific sorts of transactions within the mempool such a DEX trade or an oracle update and try to front-run them consistent with a predetermined algorithm. Frontrunners search for any transaction that they might profitably forward trade by copying it and replacing addresses with their own. They can even execute the transaction and replica profitable internal transactions generated by its execution trace.
What’s The Plan?
Robinson explained that he devised an idea to extract the cash in cooperation with a team of smart contract engineers and another team of Ethereum security engineers. The plan was to confuse the transaction in order that the bots couldn’t detect that there was a connection to the Uniswap spouse.
But however despite the efforts made, the plan didn’t succeed, and therefore the money was seized by the frontrunners.
He concluded his post by stating the info he learned from the experience and also warning miners of an identical fate if they don’t pay the required attention.