Jaredfromsubway.eth is back with a new MEV bot and new sandwich attacks

An MEV bot run by a pseudonymous individual known as Jaredfromsubway.eth has apparently been rolling out new arbitrage and sandwich attacks that are earning him millions of dollars in ETH.

Since Aug. 14, Jared — named after the former Subway sandwich chain spokesperson and convicted sex offender — has seemingly deprecated his old contract address, according to a report by MEV tracking site EigenPhi.

“With all this being said, it doesn’t mean Jared has stopped making sandwiches. During the past 2 weeks, we have noticed an emerging MEV contract rampaging with all kinds of new on-chain trade squeezing methods,” the report reads.

According to EigenPhi’s analysis, Jared’s new address was created by the same public/private key pair (also known as an “externally owned account”) as his original bot, which captured the attention of MEV traders by earning millions of dollars of ETH within three months of launching in 2023.

MEV, or maximum extractable value, is the process of reordering transactions to earn as much money as possible when building blocks. Because the order of transactions is one of the most important determinants of the prices users pay when trading (typically on decentralized exchanges like Uniswap), good faith and malicious actors alike work to reorder or exclude certain transactions.

Jared’s new contact address has processed over 85,000 transactions, generating around 765 ETH (worth just under $2 million at today’s prices), EigenPhi’s Dune Dashboard shows.

EigenPhi also found that Jared is executing more and more complicated sandwich attacks, including a five-layer and seven-layer sandwich that sees multiple victims at once being taken advantage of an arbitrage created by Jared’s MEV bot.

The simplest form of MEV sandwich attack will simultaneously front-run and back-run normal users’ transactions, which secures better pricing for attackers like Jared and worse price execution for regular users.

Because crypto transactions often have slippage, this means Jared can drive up prices, force someone to buy at inflated prices and then immediately sell behind the victim for a profit.

“The above example is only the tip of the iceberg. Jared 2.0 would use adding liquidity transactions as the front piece and/or the centerpiece and removing liquidity transactions as the back piece. The combination can be various, putting several transactions in between, becoming sandwich attack victims,” EigenPhi wrote.