@eightbitsim

onchain pirate

svm
Joined August 2021
Deleting the above, I crunched more data to build a more coherent argument. Linked here: xitter.cf/eightbitsim/status/211…
1/ @MostlyData_ respect your work a lot, nothing personal. “wide sandwich” has no proper definition, so let’s use your term, momentum trading. only question left, is it toxic for people trading on @solana?
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1/ @MostlyData_ respect your work a lot, nothing personal. “wide sandwich” has no proper definition, so let’s use your term, momentum trading. only question left, is it toxic for people trading on @solana?
1/8 There are rumors of a new kind of sandwich on Solana. However, a sandwich needs one thing: knowing your trade before it lands. We looked at the on-chain data and found no sign of that. What we see is a momentum bet. 👇🧵
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4/ and it’s just one builder. normal users land right behind a same-token buy ~20% of the time everywhere. the bot: 78% on that builder, 36% on jito/BAM, 19% elsewhere. all 22 wallets, and it pays ~11× more fee on those slots
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5/ there’s no public mempool, so before a tx lands only the leader’s TPU and the builder can see it. 1-2 positions is under a ms of block time, way too fast to watch it land and react. e.g. slot 457634942, trigger paid 0.00008 SOL fee, bot paid 0.0315 and sat right behind it solscan.io/tx/3epBu4QYiP8qXL… solscan.io/tx/41HWJovA6zohS5…
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1/ @coinbase runs 6 Solana validators. 5 use the same block builder, 1 doesn’t. Look at the difference. SOL taken by front-running bots per 1k leader slots, Sep 27-Oct 18: Coinbase: 2.66 Coinbase 02: 2.67 Coinbase 03: 2.67 Coinbase 04 (4.2M SOL): 2.20 Coinbase 05, not on the builder: 0.42 xitter.cf/eightbitsim/status/211…
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3/ Questions for the ETPs staking SOL with coinbase @FTDA_US’s filing names coinbase as staking provider. @21shares_us lists it as primary. @Grayscale, is it one of yours? Are you aware of this? Are you profiting from it? If so, we’d hope it reaches your holders. 21Shares’ own prospectus says block rewards and transaction fees “will not accrete to the Trust.” Franklin’s Staking Rewards cover consideration “in exchange for using… the Fund’s Solana.” Builder-side revenue isn’t that.
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4/ So what are your criteria for choosing a validator? Grayscale’s filing says the Trust “has no right to direct the Staking Provider in the conduct of validation activities.” Do your criteria include making sure it doesn’t profit from toxic flow at your holders’ expense? cc: @CoinbaseInsto @lewisjhan @Duncanmoir @andres21co @PeterMintzberg @Krista_Lynch_ @21shares @FranklnTempletn
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1/ I’ve received a lot of DMs asking how this mechanism works. Let’s dig into one validator, @StakingFac. Their main node started running this builder on Sep 24. Before that, no sign of this cluster on any of their slots. Its first trade came on Sep 27, three days after the switch. cluster wallets: drive.proton.me/urls/QX2SG66…
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3/ Example: slot 453633439. The cluster buys 3.0 SOL at tx 7, a 5.0 SOL buy lands at tx 8, and the cluster sells 3 slots later for +0.74 SOL. Every round, with full signatures, is in this CSV: drive.proton.me/urls/VDBEHT5… I also checked validators that switched during this window. Two that joined the builder went from 0.4× to over 2× the cluster’s normal rate. One that left dropped from 2.7× to 0.5×. The cluster follows the builder.
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4/ Staking Facilities has always been a very honest operator, so this may well be a surprise to them, and it may simply have slipped under their radar. Some of my friends tell me @StakingMatthias has been promoting this builder to other validators and swears by its safety and off-chain rewards. Perhaps he can shed some light on where he believes those off-chain rewards come from?
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8bit0 🏴‍☠️ retweeted
Replying to @degenroot
A few things worth saying plainly: Validators share revenue with delegators, sometimes through private deals on income that should go to the operator alone. Ethereum has the same thing. Validators compete for delegators. There's a market for stake, and it runs on bids. So it's safe to assume the extra revenue from this activity ends up with institutional delegators, whether they know it or not. I want to make that not knowing impossible. Stake should follow the best revenue and clean on-chain behaviour, not revenue alone. Otherwise everyone ends up running @defidevcorp style slot lagging, plus whatever else squeezes out the last bit of yield. As the article shows, this is happening on large nodes, @coinbase among them, which hold institutional stake. This can't be policed at the protocol level, and nobody claims it can. But @SolanaFndn has a role here, not quietly backing these builders, and applying social pressure on them to stop. Tokenized equities now trade on @solana. If a retail order in an on chain stock gets sandwiched inside a single builder's blocks, it's the kind of thing a regulator will ask about. Serious wall street activity won't move on chain until we resolve this. It's better to work this out now. @TimGarcia0 @MaxResnick
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20 wallet trios on Solana have turned 78 SOL into 6,500 SOL (~$690K) since late September. They buy pump.fun tokens just ahead of the crowd, then sell from another wallet a second or less later. Their buys land in some validators more than twice as often as chance would predict. Do institutional validators and their delegators know what’s happening? Are they getting a "cut" of this ?
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8bit0 🏴‍☠️ retweeted
Another sign of Helius exposing order flow and mempool leakage.I analyzed 2mqrindMAjJEQPLhroYWyiYPo5h9iAsahfdd4QtsjwdY from Jun 1-Jul 8. Pattern: on mints where it sends 2+ buys, it uses multiple buy attempts with descending CU price, so the buy can land after the dev mint tx. If CU is higher than dev, the token may not exist yet. Dataset: - 1,363 qualified mints - 5,306 deduped buy txs - 21,224 nearby leader-slot rows checked - 99.85% leader coverage Helius accounts for: - 27.12% across slots -2/-1/0/+1 - 31.47% at the actual tx slot This does not look like normal public-chain reaction speed. The wallet appears to know the dev mint flow early enough to ladder buys behind the create tx, and those attempts are disproportionately concentrated around Helius-led slots. Helius needs to explain this order-flow pattern.
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