Crypto bot borrows $200m for a $3 profit
In the throes of a bear market, a crypto trading bot wagered $200 million to pocket a $3.24 profit. A high-stakes play for such a low return might leave you scratching your head, but in the labyrinthine world of cryptocurrencies, there’s a method to the madness. Blockchain analysis firm Arkham Intelligence recently shed light on a transaction orchestrated by a crypto arbitrage bot, an autonomous software program designed to profit from price differences between markets. The bot borrowed a staggering $200 million from decentralized finance (DeFi) protocol MakerDAO to make a series of complex trades, only to gain a $3.24 profit. 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 But why? Let’s simmer down and break down ...