Front Running on Ethereum Basics (With Inside View of Mempool)

As an introduction to Front Running on the blockchain, I wanted to actually go and run my own full Ethereum node and listen (using code) to mempool transactions.
In this video, we will start with the basics and cover what a Sandwich attack is. We have all likely been victims of sandwich attacks. Then will show you Geth running on an AWS EC2 cloud machine along with some code to query the mempool. Will keep it light as this is not a coding channel. Have started a separate channel for coding only which will tell you about another time.
What I have learned about front running has made me entirely rethink Flash Loan arbitrage strategies in Crypto. Firstly, manual strategies just won't work unless paying high gas and low slippage. Secondly, unless your Front Running strategy runs on the latest and fastest client (Reth for example) and you are not taking on bespoke services offered to front runners, you will likely just lose money as your trades will be found by front runners faster than you.
From an ethics point of view, personally do not like front running in blockchain. I don't think it should be illegal in blockchain, as technically everyone has the same access...except they don't in reality. Therefore, but talking more about Front Running and exposing the "Dark Forest", feel we can encourage a healthier ecosystem which is a fairer playing field for all.
Use full resources:
Crypto Wizards Discord with GitHub code:
cryptowizards.net
Please support CW as a monthly or annual member to access the Discord/platform/Udemy resources. This is still not open to anyone from the public.
Useful links for everyone:
• Frontrunning in Decent...
• Lecture 13.7: Sandwich...
arxiv.org/abs/...
/ ethereum-is-a-dark-forest

[@kasparastaminskas6369]

That calm piano music in the background prevents me from screaming when thinking how much funds Ive lost due to those frontrunners.

[@CryptoWizards]

Yes I totally agree. Same here. The more I learn about MEV etc, the more I feel ETH is not the blockchain for me.

[@boriscrisp518]

This is great. All the banks used to keep all this information to themselves and frontrun as a boys club. Now defi is here, everyone gets a chance to participate and evolve finance

[@AllJokesAsideBenKirby]

Would like to see how these front runners execute these attacks in full detail and how they get their transactions executed on the block chain

[@CryptoWizards]

There are so many ways, so a lot of content I could make on this topic.

[@mikkaruru]

@@CryptoWizards , please do

[@yellowboat8773]

what is stopping everyone doing this? Is everyone just front running everyone? What is the edge here that others have? Is it speed of the execution like real finance world?

[@kavehtehrani]

Excellent video! Thanks for taking the time!

[@AllJokesAsideBenKirby]

This is insane. Thanks for sharing this.

[@CryptoWizards]

Anytime brother!

[@pradeeputtangi6859]

​@@CryptoWizards where is the GitHub link

[@pradeeputtangi6859]

​@@CryptoWizards please reply

[@pradeeputtangi6859]

I’m unable to subscribe your website

[@pradeeputtangi6859]

@@CryptoWizards I’m unable to subscribe your website

[@printpainting1293]

Clear presentation What are steps? • host it..where? • get a website- how? • where to write the coding? • how to get the code? • how to start the profit making? • how to get the profit?

[@maciejscibor]

If he's making a video about it it's already too late 😜

[@CryptoWizards]

HAHA! I can't fault you there.

[@BlackPillHurts]

It's not too late people make thousands from it but very few can learn how to make a real bot

[@larsschouw5]

High-Frequency Trading is not illegal in traditional finance

[@marksukhinin7622]

Wanted to do sandwiching half a year ago. Now it is all over the internet. Sadly, with increasing exposure the opportunities go away just like with any other arbitrage, basically

[@CryptoWizards]

Yup - if I was to try front running today, I'd lose my shirt.

[@cybernaut1132]

Excellent tutorial! One question - This is returning a lot of old pending requests. 5+ days old while new txn's are coming every minute. How can you change the code to only see the new ones?

[@litdude272]

I’ve been using GPT4 to assist me in developing a front running bot, one thing we did was, using the ether scan API, checked the transactions we were subscribing to, and before putting them inside our output, checked the time stamps of said transactions. hope this helps a bit

[@Hermes-hx3ru]

Did it work? I just learned about this and I wonder if it still works or is it too late. If this kind of attack becomes popular people will inevitably start protecting themselves, such as using private mempools Edit: oh yeah and also increased competition between frontrunners making it harder / less profitable for everyone

[@detoneradcarry6101]

@@litdude272 how the development going? u done it?

[@lukasogiermann5550]

I have also recently noticed that my Ethereum purchase transactions are being frontrunned. How is someone able to make a profit on my 30-40$ that will certainly not affect the value of Ethereum?

[@marksukhinin7622]

The gas is an issue in eth ecosystem. Any other chain with low fees is much more beginner friendly in that regard

[@CryptoWizards]

I agree. Also looking at Solana etc, completely different tech stack and way of doing things. I feel these chains really need to be more transparent on how validators and miners can organise transactions and what this means for the end user.

[@mkznov]

Hi Shaun, I enjoy alot your UDEMY courses. Do you have any course about detecting various scam token or honeypot token?

[@TheMatrixcube]

Great video ! 👍👍

[@jimlee5626]

So interesting! Thank you

[@CryptoWizards]

Always a pleasure!

[@marcinmakula9587]

how much costs you running node on aws , please tell somethnig about configuration

[@dedicatedserver8214]

Which EC2 instance is that? (Model) and do they give you unlimited storage?

[@EastXwesT]

First 🥇

[@CryptoWizards]

Thanks EastXWesT!!

[@EastXwesT]

@@CryptoWizardsI Just Front Runned Everyone 😂

[@lukajuice]

Bread - Look I just sandwiched your comment. Get pwned.

[@marcelciernik3775]

Hi, 17:00 you just said miners and validators can prioritize their own transaction. Would not then the front running issue be resolved if you become a miner/validator and execute your own transaction with priority?

[@CryptoWizards]

Yup - MEV. This rabbit hole goes super deep.

[@CrRPj]

How can run this a person normal I’m not dev i can ????

[@pasqualevazzana7627]

You don't need to be a validator nor to own a node to do it you can just use flashbots

[@atanas4852]

Give some more information on that and prove it!

[@bennyx1281]

Question what’s difference between a scam front runner bot and a MEV smart contract?

[@yusufharris110]

There's more to the MEV than just the smart contract.

[@damon1183]

I have a frontrun bot💯

[@CryptoWizards]

Cool man - is it working well for you?

[@noway855]

Are we going to have a course on this or can i get involve through discord. Would love to see code class on this as a course. I have to say this is how I found your classes after getting cheated on youtube frontrun fakes.

[@CryptoWizards]

No course until I have something valuable to offer. Right now, am learning a lot about this world myself and wouldn't want to do a course unless I could offer an edge. What do you think?

[@engiSwaps]

@@CryptoWizardsI think I’m waiting for your course as well! 😂

[@gravemind3859]

Do the fastest bots utilize the Yul language at all?

[@CryptoWizards]

Not sure - something I'll need to look into

[@lijh1298]

wait find the new edge~

[@lukajuice]

Bread

[@pradeeputtangi6859]

Where is the github link??

[@CryptoWizards]

In the members Discord

[@AllJokesAsideBenKirby]

Someone keeps impersonating Shaun with a whats app number. Report them

[@CryptoWizards]

Those bots are annoying, thanks for pointing them out!

[@justkaz7104]

358

[@franklee2924]

Thanks a lot! Great tutorial!