foreign
[Music]
what started this talk it started in
April
there was a tweet by bird Miller from
flashbots about a moon bird that was
actually bought for 44 East and then
immediately sold in one single
transaction for 240 eth and when I saw
this I was like wow this is pretty
insane and we are really dived into the
topic so at first I'm going to give a
short introduction what is Mev
um basically who who can say here what
happens if you click like swap on uni
Swap and in a one sentence maybe this
transaction gets submitted to the
mempool uh and the TR the technical view
is you have uh the public map Pool where
you can submit the transaction and then
traditional Finance you only have like a
centralized server and then the
transactions get uh executed with the
public mempool though people can see
your transaction and they can insert
their own transaction before or even uh
I mean the miner itself can insert the
transactions manipulate them block them
and yeah there's a more technical
explanation about like what's different
in POS and the last slide but uh Due
Time Yeah so basically
Mev exists also in like old auctions
it's basically if you skip the auction
make a contract with the seller itself
in this case the seller is the block
space
and yeah what is an nft
um for me it was kind of interesting to
understand that nft is is kind of like
the same as an erc20 token but with an
ID that was much more understandable to
me than like non-fungible token and um
they're like if you look at Google
search volume you will see that like one
to ten thousand people Google how to
create a erc20 token each month and like
how people want to create an nft it's
like 10 000 to 100 000 people so you
could assume that nfts are like very
mainstream
and um also
the the gas if you look at ethereum is
kind of high uh from nft projects so
like open C is always in the like top 10
of gas vendors you can see the beautiful
nft project on the side and um so
another question what happens if you
like click make a collection bit on a
nft side it does work on every
Marketplace but maybe uh someone knows
it but now so basically if you
um click and make a collection bid on an
nft Marketplace usually the auction is
off chain but once the the the the like
the contract gets held in the mempool
people can still like do Arbitrage so
let's dive into this rabbit hole
so what is an nft Arbitrage basically
you buy the nft at One Marketplace and
you sell it at the other Marketplace and
what what is special about it is in
crypto you can do it in a single
transaction in one block there's some
particular cases about like nfts and Mev
or in general like value extraction so
uh the the moonberg example is uh pretty
uh extreme I find and also the ape coin
maybe you've heard of it they had a a
token for every nft holder and there was
a
a a Trader who basically lent the nfts
um claimed the tokens and then sold them
immediately so he netted more than like
six hundred thousand dollars I think so
what what can we do about it because I
mean if you look at the the the life
cycle of nft it's like pretty mainstream
and I don't assume like Bill Murray uh
knows like what happens in the mempool
and um so there's a couple of resources
to educate yourself
um this is like website Mev tools which
shows like also how to like mint an nft
or like submitted transactions through
flashbots uh which is basically making
skipping the mempool there's other ways
you can avoid it right so if you have an
auction where you have a commit reveal
you first commit and then once you you
place a bit you reveal your bid and you
you cannot like front run it because you
need to commit first So when you buy an
ens domain you have to wait one minute
that's basically the reason why
so the life cycle of nft you have the
minting process
um here it can like lead to gas Wars so
uh I don't know there was a soccer
project that actually had like one
million dollars in gas fees and like the
the nft mint was like less valuable than
like it's crazy right and if you like
submit the transaction to flashpots
um it basically if it fails you would
you don't need to pay gas so that's
important but also
um there's been cases where an nft
project might be super successful and
people were like bribing the miners to
make sure that they mended so even if
you like a normal consumer you don't
have any chance to Mint it right
and the holding time of an nft I mean at
any case basically if the nfts are
flipped and uh yeah the transfer
function
um is basically
for like auctions and
um yeah so what can we do and one one
idea is we just Fork the erc20 erc71 uh
contract and if you think about okay
what is atomic Arbitrage you sell it and
buy it in one block so we just simply
lock the last transfer
and we uh block the the ID from being
transferred twice per block
um I mean it says it's more like it's a
very simple solution
um but uh yeah obviously some some
contracts might not work with it
um
so what what are what else can we do
what are like conclusions yeah first of
all there's different stakeholders so
the markets they just want to sell the
the artists just want to sell the users
I mean they want to don't maybe don't
spend so much money uh nft is a bit like
long time there's been a case where
somebody just wrote a function for uh I
think it was a potato or something
and the ver the volume is like pretty uh
variable so it might not be uh the the
best trading for like a high volume
um
Trading Company
and yeah there's like different
resources we've been working on a
extension which shows like Mev activity
phishing activity and yeah time is over
here's the sources thank you so much uh
thanks to Alan Bert Miller and so many
more maybe I I forgot some and you can
find me on Twitter under uh filmfronts
thank you so much