Ethereum could be vulnerable to early adoption, according to Dan Robinson, research partner at crypto investment firm Paradigm.
In a blog post, Robinson said the vulnerability was in the design of a set of Ethereum diaries or a group of unconfirmed transactions. He said arbitrage robots are tracking pending transactions in the Ethereum mempool and are trying to take advantage of the lucrative opportunities they have created.
Arbitrage robots usually look for certain types of transactions in the mempool (for example, DEX trading or oracle update) and try to launch them in advance according to a predetermined algorithm. First managers look for any transaction, they can profitably manage the transaction by copying it and replacing addresses with addresses. They can even execute a transaction and copy profitable internal transactions as a result of tracking progress.
Robinson explained that he developed a fundraising plan in collaboration with a team of smart contract engineers and another team of Ethereum security engineers. The plan was to obfuscate the transaction so that bots could not detect the connection with the Uniswap consort.
But despite all the efforts, the plan failed and the first candidates confiscated the money.
He ended his post by outlining the lessons he learned from the experience, and also warned the miners of a similar fate if they didn’t pay close attention.