The spam assault by the Arbitrage bot on the Polygon network produced $6,800 each day.

By spamming the Polygon network over 120 days, an arbitrage bot was able to convert 14 ETH into 218.5 ETH.

One of the big storylines of 2021 has been the rise of layer-two protocols, as the increasing popularity of decentralized finance (DeFi) and nonfungible tokens (NFT) has forced transaction prices higher on the Ethereum (ETH) network, essentially pricing out many players.

Earlier this year, the Polygon Network, originally known as MATIC, emerged as one of the leading candidates in the battle for an efficient Ethereum layer-2 scaling solution, and the project’s QuickSwap DeFi platform was also one of the most successful U2F platforms.

The platform was extremely popular at first, but when new platforms like Arbitrum and Optimism emerged, conversations about Polygon faded, and some traders even refer to the site as “slow.” According to Flipside Crypto data, the Polygon network’s low-cost capabilities came under threat when a smartly constructed arbitrage bot managed to transform 14 Ether into 218.5 Ether in less than four months.

Each block was filled with “meaningless transactions” by the bot.

According to Flipside Crypto statistics, the attack began in early May and peaked at 8 million transactions per day on the Polygon network at one point in June.

The greatest number of transactions on the Ethereum network over the same time period was 1.2 million.

According to data obtained on a Polygon forum, the attacker has been boosting transaction volumes by up to 90% by flooding each block full of “meaningless transactions” while only paying approximately 0.02 MATIC to spam the whole block and around $1,000 for a complete day.

A closer examination of the network’s transactions and addresses revealed that roughly 30% of the network’s transaction count was originating from two contracts that were discovered to be arbitrage bots that conducted thousands of daily transactions to various decentralized exchanges (DEX).

It is unclear why the spammer opted to fill each block when the bots were only executing 2,000 – 4,000 deals each day, but one possibility is that it was done to prevent anybody else from front running the trade.

The bot made an average of $6,800 each day.

The bot was able to increase an initial sum of 14 Ether to 218.5 Ether, which is presently worth $813,694 over a period of 120 days.

That equates to a daily profit of around $6,800 before deducting the expense of spamming the network.

In reaction to the spammer, the Polygon team finally decided to raise the minimum transaction cost from 1 gwei to 30 gwei in order to combat spam and enhance network health.

According to statistics given by Delphi Digital, the increase in average transaction prices corresponded with a significant decrease in the number of daily transactions since it now costs $30,000 to spam the network for a full day.

Spam transactions have decreased from 2 million to 500,000 per day, a 75 percent decline, but they still account for 16.7 percent of daily transactions, according to network data.

This means that the bots spend around $5,000 of their daily $6,800 earnings on gas in order to keep the scam operating.