A Solana-powered Maximum Extractable Value (MEV) bot managed to make $1.7 million on a trade that occurred when a trader made a $9 million purchase of Dogwifhat (WIF) memecoin “in the most inefficient way possible.” The MEV bot operated by 2Fast exchanged 703 Solana for 490,000 WIF and then exchanged the same amount of WIF for 19,035 SOL in the same batch of transactions, making a profit of $1.73 million, according to Solscan data.
The bot used a tool developed by Jito Labs, the development arm of the liquid staking protocol Solana Jito. The tool, which operates similarly to flash bots on the Ethereum network, allows the bots to search for the maximum extractable value and place bets to be included in a batch of transactions.
This sudden arbitrage play came about after a trade made by one trader Zeroxtrading.sol who bought $8.9 million worth of memecoin in a single order. The overbid was made in a pool with low liquidity, resulting in the order being filled at approximately $3 for each WIF token, which is approximately 1400% more than what the token was worth at the time. The subsequent and immediate drop after the transaction resulted in the trader instantly losing 92% of his funds.
Image: Bitcoinist
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