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Monday, June 10, 2024
HomeCryptoSolana Foundation removes validators related to sandwich attacks

Solana Foundation removes validators related to sandwich attacks

The Solana Foundation has announced the removal of a group of validator operators from its authorization program due to their involvement in sandwich* attacks targeting Solana users.

Solana Authentication Relations Lead Tim Garcia launched Notification on the Solana Foundation’s Discord server, stating that this is a “final” decision on the matter, with enforcement actions ongoing as the Foundation discovers multiple operators involved in mempools that enable attacks sandwhich.

According to Mert Mumtaz, co-founder of Solana RPC provider Helius, the move from the platform will protect retail users from authenticators that may engage in authorization abuse activities based on the rules for for MEV (Maximum Extractable Value)*.

MEV issues arise on the network when validators manipulate transaction ordering to maximize profits. This includes front-running* and man-in-the-middle attacks, where validators exploit transactions to profit from price arbitrage, causing higher costs and causing slippage. price for users. Solana Foundation’s actions against validators involved in such activities demonstrate their commitment to protecting users and maintaining network integrity.

The Solana Foundation previously laid out its rules against such attacks in a May 7 Discord post, which stated that anyone found “engaging in” activity that the Foundation considered “toxic” will be “kicked out of the program” along with their stake.

The Solana Foundation Delegation Program was created to support validators by delegating SOL tokens to them, eliminating the burden of validators having to hold large amounts of tokens. Validators are selected based on performance and must comply with certain conditions.

Despite being removed from the delegation program, operators can still contribute to the blockchain as Solana is a permissionless network. However, they will no longer receive staked SOL from the Foundation.

*Sandwich attack is a type of MEV attack in which an attacker (usually a miner or validator) exploits the ability to change the order of transactions to profit from price fluctuations in pending transactions.

*MEV (Maximum Extractable Value) is a concept that refers to the maximum profit that an actor (usually a miner or transaction validator) can obtain by reordering, inserting, or removing transactions in a block on the blockchain. MEV appears in blockchain systems based on Proof of Work (PoW) and Proof of Stake (PoS).

*Front-running occurs when one party makes a trade based on information they know will affect the price or market, then another party takes advantage of this information to make their own trade before the original trade is completed perform. In the cryptocurrency market, front-running frequently occurs in transactions on decentralized exchanges (DEX), where parties can execute transactions without going through intermediary control. . A party can perform front-running by using trading bots to monitor and place previous transactions on the blockchain network based on information about upcoming transactions.

Itadori

According to Cryptobriefing

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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