I deployed a token ABC and created a liquidity pool in pancakeswap with pair ABC/BNB. But arbitraged bots attacked and stole a large sum of money. How to stop this and why is this occurring? I think something gets arbitraged away when there is difference in price in different exchanges, but I have created pool in 1 exchange only.
Ok, here's what's happening:
- I'm almost sure there exists another exchange with a lower price for the pair, otherwise the arbitrage opportunity wouldn't exist.
- The pair creation tx was enough to trigger those bots, as the tx is publicly visible in the mempool even before it's mined.
- If you wanted protection from arbitrage bots, you could possibly lock the pair so that trading could only be done in one direction or the other, so that you would eliminate the arbitrage opportunity. As long as there is such opportunity, a bot would certainly take it.