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The Vyper exploits released massive arbitrage opportunities. The Lightning Reflex Bot captured the first arbitrage opportunity after the attack, earning $296K profit after paying 50% of the revenue to the builder.
Step 0: The arbitrager flash loaned 78.8 ETH from Balancer.
Steps 3,4: The arbitrager exchanged 78.8 ETH for 1,115 pETH at Curve.fi Pool (pETH-ETH-f).
Steps 5,6: The arbitrager exchanged 1,115 pETH for 1,764,156,755 JPEG at Vyper contract.
Steps 7,8: The arbitrager exchanged 1,764,156,755 JPEGs back to WETH. Up to here, the gross profit was 315 ETH.
Step 9: The arbitrager repaid the flash loan.
Step 12: The arbitrager paid 50% of his profit as the builder fee.
Step 13: The arbitrager transferred the revenue, 157 ETH, to his own address.
Curve.fi: Curve.fi is a decentralized exchange (DEX) optimized for efficient stablecoin trading.
Vyper: Vyper is a contract-oriented, pythonic programming language. It aims to simplify the process of writing smart contracts.
SushiSwap: A major DEX.
Balancer: Another DEX.
The oval "to" is the arbitrager's contract address.
The ovals "Balancer Vault", "pETH-ETH-f", "Vyper contract" and "SushiSwapPool" are the corresponding pool address.
The solid blue oval "WETH" is the WETH contract address. It can swap ETH (the native currency on the Ethereum chain) to WETH (an ERC20 token) with a 1:1 ratio and vice versa.
The pentagon "builder" is the builder's address. The arbitrager paid the builder fees to make sure his transaction appeared and appeared at a given place on the chain.
The pentagon "leaf" is the arbitrager's wallet address.
ETH, WETH, pETH, JPEG
Step 0: The arbitrager flash loaned 78.8 ETH from Balancer.
Step 1,2: Exchanged 78.8 WETH for equal ETH.
Steps 3,4: The arbitrager exchanged 78.8 ETH for 1,115 pETH at Curve.fi Pool (pETH-ETH-f).
Steps 5,6: The arbitrager exchanged 1,115 pETH for 1,764,156,755 JPEG at Vyper contract.
Steps 7,8: The arbitrager exchanged 1,764,156,755 JPEGs back to WETH. Up until now, the gross profit was 315 ETH.
Step 9: The arbitrager repaid the flash loan.
Step 10,11: Exchanged 315.5 ETH for equal WETH.
Step 12: The arbitrager paid 50% of his profit as the builder fee.
Step 13: The arbitrager transferred the revenue, 157 ETH, to his own address.
Analysis of historical transactions from this bot's address shows it was an experienced arbitrageur regularly transacting across Curve, Uniswap, and SushiSwap. See The Lightning Reflex Bot for more details.
Vyper Exploit, Arbitrage
