{"id":58926,"date":"2022-03-18T12:45:55","date_gmt":"2022-03-18T10:45:55","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=58926"},"modified":"2025-09-04T19:17:45","modified_gmt":"2025-09-04T16:17:45","slug":"mev-bot-operators-used-nftx-loans-to-participate-in-apecoin-airdrop","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/mev-bot-operators-used-nftx-loans-to-participate-in-apecoin-airdrop\/","title":{"rendered":"MEV bot operators used NFTX loans to participate in ApeCoin airdrop"},"content":{"rendered":"<p>Operators <a href=\"https:\/\/u1f987.com\/en\/news\/the-invisible-tax-on-ethereum-what-mev-is-and-how-to-counter-it\">MEV bots<\/a> used loans from the public pool of NFTX to claim ApeCoin (APE) tokens of the <span data-descr=\\\"Bored Ape Yacht Club\\\" class=\\\"old_tooltip\\\">BAYC<\/span> project. Coupled with liquidity shortages after trading commenced, this led to anomalous spikes in the asset&#8217;s price.<\/p>\n<p>The project team <a href=\"https:\/\/u1f987.com\/en\/news\/bored-ape-yacht-club-launches-apecoin-airdrop\">presented<\/a> an ecosystem-related token on March 17. Its issuance will total 1 billion coins and remain fixed. Among BAYC NFT holders, as well as derivative assets MAYC and NAKC, 150 million APE will be distributed.\u00a0<\/p>\n<p>As of writing, the tokens have been claimed by 12,121 addresses (over 79% of those eligible for the airdrop).<\/p>\n<figure class=\\\"wp-block-image size-large\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"1024\\\" height=\\\"190\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/ape-claimed-1024x190.png\\\" alt=\\\"MEV bot operators used NFTX loans to participate in ApeCoin airdrop\\\" class=\\\"wp-image-167957\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/ape-claimed-1024x190.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/ape-claimed-300x56.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/ape-claimed-768x142.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/ape-claimed-1536x284.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/ape-claimed.png 1556w\\\" sizes=\\\"auto, (max-width: 1024px) 100vw, 1024px\\\" \/><figcaption>\u0414\u0430\u043d\u043d\u044b\u0435: <a href=\\\"https:\/\/dune.xyz\/hildobby\/APE-Airdrop\\\">Dune Analytics<\/a>. <br \/><\/figcaption><\/figure>\n<p>Parsec Finance founder Will Sheehan noted that in the wake of the distribution, the NFTX pool was literally rinsed by MEV bot operators.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">Bored Ape NFTX vault atomically rinsed by an MEVor<\/p>\n<p>buys vault token -> redeems entire pool -> claims airdrop of 60k APE -> re-supply\u2019s the pool<a href=\\\"https:\/\/t.co\/X83URmgyBK\\\">https:\/\/t.co\/X83URmgyBK<\/a><\/p>\n<p>\u2014 Will Sheehan (@wilburforce_) <a href=\\\"https:\/\/twitter.com\/wilburforce_\/status\/1504437189979119622?ref_src=twsrc%5Etfw\\\">March 17, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>Direct interaction with NFTX&#8217;s smart contracts gives users the ability to use the <a href=\"https:\/\/u1f987.com\/en\/news\/what-are-flash-loans\">flash loans<\/a> (Flash Loans) function. In analogy with the <a href=\"https:\/\/u1f987.com\/en\/news\/what-are-flash-loans\">flash loans<\/a> (Flash Loans), it enables borrowing assets without collateral and repaying them within a single transaction.<\/p>\n<p>Under normal circumstances this would not have yielded the operator anything beyond transaction costs. However, in the case of the APE airdrop, he stood to earn substantial profits. To do so:<\/p>\n<ul class=\\\"wp-block-list\\\">\n<li>The user deposited the BAYC NFT into the platform&#8217;s liquidity pool;<\/li>\n<li>used the assets to claim rewards in APE;<\/li>\n<li>sold all APE;<\/li>\n<li>returned the NFT to the pool.<\/li>\n<\/ul>\n<p>This earnings method is likely no longer available \u2014 NFTX pools are unlikely to still contain BAYC that have not yet participated in the airdrop.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">i doubt theres any left unclaimed in those pools so probably not.<\/p>\n<p>\u2014 Wazz (@WazzCrypto) <a href=\\\"https:\/\/twitter.com\/WazzCrypto\/status\/1504506264793067521?ref_src=twsrc%5Etfw\\\">March 17, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>APE tokens were sold primarily on decentralized platforms such as Uniswap v2 and SushiSwap. On the latter, price surges of the asset \u2014 which at one point exceeded $440 on SushiSwap \u2014 consistently coincided with large sales.<\/p>\n<figure class=\\\"wp-block-image size-large\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"1024\\\" height=\\\"680\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/sushi-1024x680.png\\\" alt=\\\"MEV bot operators used NFTX loans to participate in ApeCoin airdrop\\\" class=\\\"wp-image-167958\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/sushi-1024x680.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/sushi-300x199.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/sushi-768x510.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/sushi.png 1360w\\\" sizes=\\\"auto, (max-width: 1024px) 100vw, 1024px\\\" \/><figcaption>\u0414\u0430\u043d\u043d\u044b\u0435: <a href=\\\"https:\/\/dexscreener.com\/ethereum\/0x130f4322e5838463ee460d5854f5d472cfc8f253\\\">DEX Screener<\/a>.<br \/><\/figcaption><\/figure>\n<div class=\\\"wp-block-text-wrappers-update-2 article_update\\\"><time class=\\\"gtb_text-wrappers_update_time\\\">20 March 2022 | 14:51<\/time><span class=\\\"gtb_text-wrappers_update_head\\\">Update: <\/span>\\n<\/p>\n<p>Abnormal price surges are the result of MEV bot activity, in particular the practice of <a href=\\\"https:\/\/hackernoon.com\/no-sandwich-please-popular-defi-attack-strategy-analysis-jk1734rf\\\">sandwich attacks<\/a>.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">The viral txn of an MEV bot \u00abselling 2.4 <a href=\\\"https:\/\/twitter.com\/search?q=%24APE&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$APE<\/a> for 946 ETH\u00bb<\/p>\n<p>A few people asked me how this happened. In short, it didnt happen.<\/p>\n<p>Seems like a lot of people that got hooked on NFTs weren\u2019t around during DeFi Summer in 2020 and arent familiar with MEV bots. Let me try to explain \ud83d\ude42 <a href=\\\"https:\/\/t.co\/CnQSWljguP\\\">pic.twitter.com\/CnQSWljguP<\/a><\/p>\n<p>\u2014 0xBeans.eth (@0x_Beans) <a href=\\\"https:\/\/twitter.com\/0x_Beans\/status\/1505181554351378439?ref_src=twsrc%5Etfw\\\">March 19, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script>\\n<\/div>\n<p>\\n\\n\\n\\n<\/p>\n<p>The airdrop was not without other mishaps either. Some users, by mistake, sent APE to a smart-contract address, thereby locking access to the assets.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">Yep that was me. First time I ever not double checked the address\ud83e\udd37<\/p>\n<p>\u2014 Jason Stone (@Mill_Mentor) <a href=\\\"https:\/\/twitter.com\/Mill_Mentor\/status\/1504686413073338372?ref_src=twsrc%5Etfw\\\">March 18, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script>\\n\\n\\n<\/p>\n<p>In March 2022, the company behind BAYC, Yuga Labs, acquired <a href=\"https:\/\/u1f987.com\/en\/news\/bored-ape-yacht-club-creators-acquire-rights-to-cryptopunks-and-meebits\">intellectual property rights to the CryptoPunks and Meebits NFT collections<\/a> from Larva Labs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>MEV bot operators used loans from NFTX&#8217;s public pool to claim ApeCoin (APE) tokens of the BAYC project. Coupled with liquidity shortage after trading began, this led to anomalous spikes in the asset&#8217;s price.<\/p>\n","protected":false},"author":1,"featured_media":58927,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1158,1356,1213],"class_list":["post-58926","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-airdrops","tag-bored-ape-yacht-club","tag-nft"],"aioseo_notices":[],"amp_enabled":true,"views":"31","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/58926","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=58926"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/58926\/revisions"}],"predecessor-version":[{"id":58928,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/58926\/revisions\/58928"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/58927"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=58926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=58926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=58926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}