User X Loses $47,000 in KOGE/USDT Trade Due to High Slippage and MEV Attack

On June 8th, a significant financial loss was reported in a single trade involving the KOGE/USDT transaction. The user, identified as User X, incurred a loss of $47,000 due to a high slippage tolerance and the absence of MEV protection. The user's trade volume was $210,000, but they ultimately received only $161,000 worth of KOGE, resulting in the substantial loss.

The trade was routed through three different liquidity pools: $120,000 through the Uniswap V4 liquidity pool, $43,000 through the Uniswap V3 liquidity pool ending in E507, and $47,000 through the PancakeSwap liquidity pool ending in 7057. During the transaction through the PancakeSwap liquidity pool, an MEV bot front-run a $320,000 trade, artificially inflating the price of KOGE. This caused the user to complete the transaction at an inflated price, leading to the significant loss.

The PancakeSwap liquidity pool itself was not at fault, as it is only responsible for swaps, while slippage determination is handled by the order router. The user's parameters indicated an intention to swap $214,838 for KOGE, with a minimum return amount of 1640 KOGE. However, the user received 2547 KOGE, suggesting a slippage tolerance of nearly 50% and no MEV protection. After the MEV attack, the user added the KOGE token to the ZKJ-KOGE liquidity pool to earn fees.

This incident highlights the risks associated with high slippage tolerances and the lack of MEV protection in large trades. Users must be cautious and implement appropriate measures to safeguard their transactions against such vulnerabilities. The analysis underscores the importance of understanding the mechanics of liquidity pools and the potential impact of MEV bots on trade execution.