Gelato Network Integrates Flashbots — Offering Web3 Developers Front Running Protection and Private Transactions
Executing a transfer, swap, or withdrawal of thousands of dollars worth of crypto assets on Ethereum must be done with great caution. As Dan Robinson’s post “Ethereum is a Dark Forest” describes acutely, there are generalized frontrunners scanning every transaction submitted via the traditional mempool route. These frontrunners are constantly trying to extract value from your transactions by manipulating transaction ordering within a block, by crafting and placing their own transactions before and/or after their targets.
This imposes a significant problem to web3 developers who need to programmatically submit transactions to miners for their protocol to function as intended. For example, executing `harvest()` functions which under the hood conduct swaps of one asset to another without proper slippage values are prone to getting front-run by malicious and often sophisticated players. This is just one of several ways these bots extract value from protocol users, a game usually known as Maximal Extractible Value (MEV).
Known attack vectors used by MEV bots are Sniping, front running, back running and sandwich attacks, all of which have one common theme: trying to extract as much value out of protocols and their users as possible.
“Flashbots provides web3 developers with a superior DevX by enabling them to get transactions mined privately, without reverts, and protected from MEV. We are glad to see Gelato adopt Flashbots as the first major Keeper Network on Ethereum.” — Hasu, Flashbots
Beating front runners with their own weapons
Currently, there are only one provably successful way to avoid these sandwich attacks and other MEV attack vectors for developers: use a private Flashbots channel.
This is why, starting February 1st, Gelato Network will begin relaying all of its Ethereum transactions via the private Flashbots channel by default.
This new functionality provides web3 developers that relay their transactions using Gelato with the following benefits:
- Front running Prevention: Transactions are no longer visible in the mempool prior to getting mined, making it impossible for Flashbot searchers to snipe, front run, back run, or sandwich attack your transactions.
- Privacy: Transactions are hidden from the public eye until being mined. This means other parties can no longer take advantage of the information that a transaction will be executed soon.
- Fast mining and no reverts: Developers will enjoy fast access to block space without worrying about overpriced or reverted transactions. This will enable Gelato to become more decentralized and require less off-chain coordination of Executors that was used previously to avoid costly reverts.
After extensive research and experimentation, we now believe there is plenty of Ethereum block space reserved for Flashbots transactions so that even regular transactions that pay low to medium fees to miners have a high chance of getting mined quickly and reliably.
How to start using Gelato for relaying your transactions via Flashbots?
Go to Gelato Ops and start creating a task to automate any function on any smart contract you like, while enjoying the full benefits of the Flashbots relay. For inspiration of what functions you can automate using Gelato, check out the harvesting Vaults example in our docs. Here is a tutorial that walks you through how Gelato Ops works.
If you want to simply relay your transactions on Ethereum in real-time, without requiring any sort of conditional / deferred transaction execution, feel free to reach out to us on Discord in order to get early access to our Multichain Relay API that now also supports the Flashbots relay!
Special shout out to Hasu and Robert Miller from the Flashbots team for reviewing this post!
About Gelato Network
Gelato Network is web3’s automation network, enabling developers to automate & relay arbitrary smart contract executions on and across all EVM-based compatible blockchains such as Ethereum.
Gelato’s goal is to provide developers with a reliable, scalable & decentralized network to which they can outsource all of their web3 related DevOps operations.
Examples of which features are powered by Gelato include:
- Limit Orders on PancakeSwap
- Periodically updating debt ceilings on MakerDAO
- Offering users gasless token claims on Connext
- Automatically compounding yield farming vaults on Beefy Finance
- Automating the breeding of new digital racehorse NFTs on ZED RUN
- Rebasing of algorithmic stablecoins with Tomb Finance
- Updating price oracles on Abracadabra
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► Check out what we’ve been working on at https://www.gelato.network
► Automate your smart contract at https://app.gelato.network/
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