Early this morning, a user on the decentralized exchange Uniswap V3 made a costly mistake, resulting in a staggering loss of over $700,000 in less than 12 seconds.
According to blockchain analytics firm Arkham, it appears that the Uniswap user mistakenly added $1.56 million worth of wrapped bitcoin to a liquidity pool that contained the Curve DAO token (CRV), likely confusing it for USD.
In return, the user received 1.56 million CRV tokens, which was valued at only around $850,000 at the time of the transaction.
Maximal Extractable Value (MEV) bots swiftly identified the discrepancy and swooped in to exploit the arbitrage opportunity.
Despite their efforts, the bot managed to secure a profit of just $260 after having to pay a $527,000 bribe to validators to ‘frontrun’ other competing bots and ensure its transaction was processed first, according to blockchain analytics firm Arkham.
Arkham commented on the incident with a tweet that read “Tough Luck!”. However, such errors like this are referred to as ‘fat finger’ mistakes.
A similar incident occurred last month when Lookonchain, an on-chain data provider, reported that a user mistakenly exchanged over $130,00 in USDR for USDC, which was worth $0 at the time.