Significant 584.05 ETH MEV Block Reward Logged; Raises Questions
ETH Staking
Summary: Ethereum's core developer Eric.eth claimed that a recent exploit in Curve Finance caused the production of some of the highest MEV reward blocks in the blockchain's history. A significant maximal extractable value (MEV) reward blocks of 584.05 ETH was purportedly generated.
Key Takeaways:
- A significant MEV reward blocks of 584.05 ETH was purportedly generated.
- The exploit of Curve Finance stable pools on July 30 was to blame as per ETH dev.
- The MEV bot block reward was worth around $1 million.
A significant maximal extractable value (MEV) reward blocks of 584.05 ETH was purportedly generated as a result of the recent exploit in Curve Finance. In a post on July 31, Ethereum core developer “eric.eth” said that the exploit of Curve Finance stable pools on July 30 was to blame for today’s production of some of the highest MEV reward blocks in Ethereum’s history. March saw the largest MEV reward block to date, 692 ETH.
Raises Moral Questions
The dev said that when a bot detects an impending hack in the mempool, it would replicate the transaction and “front run” it by submitting it to the blockchain before it is validated. A MEV bot is programmed to create arbitrage opportunities in an otherwise regular block by rearranging and/or adding transactions.
MEV bots may also anticipate liquidation transactions and make early purchases of discounted assets. The validator is given the opportunity to submit a block via a relay that employs the services of companies expert in the collection of this ancillary fee. They will get compensation for facilitating the MEV bot’s front-running of the transaction.
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The “block reward” has been logged by several massive blocks in the last few hours. At 1.34 a.m. UTC on July 31, the significant MEV bot block reward of 584.05 ETH, worth around $1 million was generated. In the vicinity of that time, there were additionally 345 ETH and 247 ETH distributed as block rewards.
In light of the tweet’s implications—that perhaps illegal monies may be used to bribe validators to enable front-running of transactions—moral considerations were raised.
