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.

  • 1
    Maybe you could reference your pair creation tx so that we could help you better with investigation. Aug 17 at 19:48
  • strike them back with samonella token!!!
    – Nulik
    Aug 17 at 21:30
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    now, jokes aside, if you put your worthless token inside a pool with USD or some other liquidity and your token can be minted easily of course people would extract your USDC / DAI liquidity, thats what markets are for, they will set fair price for your asset
    – Nulik
    Aug 17 at 21:32
  • @Nulik What do you mean by minted easily. If it has fixed supply how can anyone mint it? Aug 18 at 4:01
  • @GajeelRedfox so how did these traders get your token then
    – Nulik
    Aug 18 at 17:35

Ok, here's what's happening:

  1. I'm almost sure there exists another exchange with a lower price for the pair, otherwise the arbitrage opportunity wouldn't exist.
  2. The pair creation tx was enough to trigger those bots, as the tx is publicly visible in the mempool even before it's mined.
  3. 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.

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