Machairodont
Junior Member
- Oct 9, 2021
- 166
- 155
Hey there,
I wanted to ask if some of you have already gathered some experience in Crypto Sandwich Scalping.
The approach works like this:
A bot is monitoring a blockchain for transactions with specific features. Normally it's aiming to find larger transactions that will move the price on most of the exchanges.
Before this larger transaction is confirmed by miners, a frontrunning transaction is placed on the blockchain to buy/sell that asset with a somewhat higher transaction fee.
Chances are high that your posted frontrunning transaction is included in a block frist, and you can buy/sell that crypto still for the better price.
After the bigger transaction is confirmed and included in a block, the price jumps and you close your frontrunner with a backrunner at the higher/lower price.
Some analysis seems to show that this is already done on a massive scale with highest rewards.
See details here: https://pub.tik.ee.ethz.ch/students/2021-FS/BA-2021-07.pdf
Anybody has some experience with this and is willing to share some insights? Anybody is interested in JV to give that a try?
I wanted to ask if some of you have already gathered some experience in Crypto Sandwich Scalping.
The approach works like this:
A bot is monitoring a blockchain for transactions with specific features. Normally it's aiming to find larger transactions that will move the price on most of the exchanges.
Before this larger transaction is confirmed by miners, a frontrunning transaction is placed on the blockchain to buy/sell that asset with a somewhat higher transaction fee.
Chances are high that your posted frontrunning transaction is included in a block frist, and you can buy/sell that crypto still for the better price.
After the bigger transaction is confirmed and included in a block, the price jumps and you close your frontrunner with a backrunner at the higher/lower price.
Some analysis seems to show that this is already done on a massive scale with highest rewards.
See details here: https://pub.tik.ee.ethz.ch/students/2021-FS/BA-2021-07.pdf
Anybody has some experience with this and is willing to share some insights? Anybody is interested in JV to give that a try?