One member of the community praised the bot, declaring that “profit is profit,” while another stated the incident shows how severe the bear market is.
In order to secure a pitiful profit of $3.24, a cryptocurrency trading bot that specializes in arbitrage transactions carried out a number of intricate tactics within the Ethereum network, including using a $200 million flash loan. On June 14, the blockchain analysis company Arkham Intelligence released the transaction information.
The bot provided money to the Aave DAI market by borrowing 200 million DAI via MakerDAO, a decentralized finance (DeFi) network. The bot then took out a loan for 1.349 Wrapped Ether (WETH) using the borrowed money.
The Threshold Network (T) tokens were subsequently purchased on the Curve Finance market using the borrowed WETH. The T tokens were then sold by the bot via the Balancer liquidity protocol.
The bot was able to get 0.019 Ether in total, which was about $33 at the time of the exchange. However, there were substantial expenses associated with the transaction; in total, $28.76 in transaction fees and $1 went to the block constructor were paid.
After subtracting the transaction costs, the trading bot was ultimately left with a profit of only $3.24. Despite the fact that the risk taken by the bot seemed high compared to the return, some community members agreed that any profit, no matter how small, is still viewed as a success.
In response to the situation, one Twitter user noted that the bot’s attempt to make a modest profit underscores the difficult circumstances of the bear market, where profit margins may be significantly less.