Bots aren’t scarce.
Ethereum may be unsafe with frontrunners says Dan Robinson, a researcher at Paradigm investment firm.
According to Robinson, the risk exists because of the kind of mempool Ethereum has. He also made mention of the possibility of getting attacked through unconfirmed transactions. Robinson is sure about the existence of arbitrage bots that exploit transactions waiting to be confirmed in the mempool for profit-making.
The arbitrage bots target some kinds of transactions in the mempool and DEX trade is a typical example. When the transactions are found, the bots front-run them based on an already-established set of rules. The aim of front-running is to make profits but this is condemnable because it involves the use of selfish means.
Robinson said he created a solution to recover money lost with the help of some smart contract engineers and Ethereum security engineers. He said the solution was supposed to make the bots not to recognize their targets.
Although it was a painstaking attempt, the solution did not scale through and the front runners still had the money they extracted.
In summary, he recounted what the experience taught him and he urged miners to be careful so that they won’t meet the same trouble.