A Uniswap V3 user who mistook one token for another when creating a liquidity pool appears to have lost more than $700,000 in 12 seconds during an MEV-related transaction this morning.
It appears that the user miscalculated the value of the Curve DAO (CRV) token against the U.S. dollar when adding $1.56 million of wrapped BTC to the liquidity pool. The user received 1.56 million CRV in return. At the time, this was only worth around $850,000.
The MEV robots were quick to exploit the arbitrage. However the most successful only made a total profit of around $260 after paying a $527,000 fee to validators to “stand up” to the other bots and finish their trades first. According to blockchain analytics firm Arkham. “No such luck,” Arkham’s message added.
Transaction errors are often referred to as “fat finger” errors. This isn’t common in crypto-currencies. Last month, one user traded over $130,000 in a single stablecoin. USDR, against $0 for another stablecoin, USDC.