The data represented by Flipside Crypto notes that the Polygon Network was subjected to a well-orchestrated attack by an arbitrage bot. The attackers designed this arbitrage bot to take advantage of the low-cost capabilities of the Polygon network, formerly MATIC.
As a result of continuous attacks over a period of 120 days or less than 4 months, the attackers managed to turn 14 ETH to 218.5 ETH.
At the start of the year, the Polygon Network started as one of the most promising projects as an Ethereum layer-2 scaling solution but was later deemed as “slow” when compared to other projects like Arbitrum.
Polygon Network spammed via meaningless transactions
The report of this incident shows that the Polygon Network was attacked as early as May when the currency saw record high daily transactions at 8 million per day compared to Ethereum’s 1.2 million transactions at that time.
The data from Flipside Crypto indicates that this bot was responsible for inflating the transaction volumes of the MATIC network by over 90%, using a fee of $1000 daily, i.e., 0.02 MATIC to spam an entire block.
It was further found from the analysis of transactions and addresses that the bots were responsible for causing a 30% in the transaction volumes of the Polygon Network. There were two contracts causing the inflation by conducting nearly thousands of transactions each day on decentralized exchanges or DEX.
$6,800 profits gained each day
This attack on the Polygon Network turned the initial amount of 14 ETH to 218.5 Ether which currently stands at 813,694 USD. Breaking down the cost of implementing the attack, the attackers made a profit of $6,800 per day.
The Polygon Network acted swiftly after identifying the cause and raised the cost of each transaction from 1 gwei to 30 gwei. This implies that the bot that made a profit of $6,800 per day will have to spend $5,000 now.
The transaction volumes of Polygon raised by 330% as reported by TheCoinRise earlier. This step was initiated to improve the health of the network, dropping the spammed transactions by over 75%, i.e., from $2,000,000 to just $500,000 each day.