Concerned about MEV bots attacking your transactions, resulting in unexpected losses? Discover how to safeguard your assets on the blockchain in this very article.
A Brief Look at MEV Bots
MEV (Miner Extractable Value) bots are automated programs in blockchain networks that exploit opportunities to maximize profits by manipulating transaction orders. They can:
- Front-run high-value transactions.
- Back-run existing transactions.
- Execute sandwich attacks.
They are considered dangerous because they can negatively impact users by:
- Increasing transaction fees.
- Unfairly profiting at the expense of others.
- Manipulating decentralized finance (DeFi) protocols.
However, efforts are ongoing to mitigate their impact on blockchain networks and make transactions more fair and secure.
Flashbots: Solution to Protect Your Transactions from MEV-bots
Protecting your transactions from MEV bots with Flashbots requires understanding what Flashbots are and how to use them effectively. Here’s a guide on both of these aspects:
Understanding Flashbots:
Flashbots is an initiative created to address the issue of MEV in blockchain networks, particularly Ethereum. MEV arises from miners and other network participants reordering or manipulating transactions to maximize their profits, often at the expense of users. Flashbots aims to make transactions more transparent and fair by allowing users to submit transactions directly to miners.
How to Protect Your Transactions with Flashbots:
- Visit the Flashbots Documentation:
https://docs.flashbots.net/flashbots-protect/rpc/quick-start/
2. Click on the “Connect Wallet to Protect” button:
The new network (Flashbots Protect Mainnet) will be added to your MetaMask wallet. This network will be used for On-Chain and Cross-Chain transactions from the Ethereum network.
Now, you can conduct On-Chain and Cross-Chain swaps from the added Flashbots Protect RPC as if you’re making transactions from the Ethereum network. Your assets from the Mainnet will be displayed on the “Flashbots Protect (Mainnet)” chain.
You can also add the RPC manually to your wallet
If you’d still like to use the RPC, please read the following: We’ve used MetaMask in this guide, but the RPC endpoint should work for other wallets that support custom RPCs.
- Click your RPC endpoint at the top of MetaMask. By default, it says “Ethereum Mainnet.”
2. Click “Add network”
3. Click “Add a network manually”
4. Add the following details:
- Network Name: Flashbots Protect (Mainnet)
- New RPC URL: https://rpc.flashbots.net
- ChainID: 1
- Currency Symbol: ETH
5. Scroll to the bottom and click “Save”
6. You can now select the Flashbots Protect RPC from the dropdown list whenever you want to switch.
Note: If you switch away from the Flashbots Protect RPC while your transaction is pending, it will send your transactions to the RPC endpoint you change to. In the case of the Ethereum mainnet, this will send your transactions to the public mempool.
Your transaction will be sent privately to the miners, hence it will be publicly viewable on Etherscan only after its successful completion.
Advantages of Flashbots:
Transparency: Flashbots allows users to interact directly with miners, reducing the opacity and potential manipulation found in the public mempool.
Fairness: Transactions are ordered based on their economic value and not manipulated by MEV bots, ensuring a fairer transaction processing system.
Reduced MEV Risk: By offering a separate transaction pool, Flashbots mitigates the risk of MEV extraction, benefiting both regular users and DeFi participants.
Additional Tips for Enhanced Protection:
1. Set Slippage Tolerance:
Set your slippage tolerance limits to prevent MEV bots from manipulating your trades. This ensures that your orders will only execute if the price remains within your pre-defined range. Keep maximum slippage low when swapping assets to minimize the impact of MEV. You can change the slippage tolerance in the settings of your On-Chain or Cross-Chain swap.
2. Monitor Gas Prices:
Stay informed about gas prices on the blockchain network you’re using. MEV bots often target transactions with high gas fees. Avoid overpaying and drawing unwanted attention by using gas tracking tools.
3. Consider MEV Protection Services:
Some blockchain projects and services offer MEV protection features that can help safeguard your transactions. Explore these options to add an extra layer of security.
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