Freshly liberated in January 2025 from his unintended stay at USP Tucson, Ross Ulbricht is keen to make the most of his new-found freedom, wealth, and the advances in blockchain technology that the last 10 years have brought. And what better way than to provide liquidity for a new meme coin set up in his honor?
Some enterprising folk launched $ROSS on Pump.fun, and donated 50% of the supply to Ross. Now Ross (or someone with access to his substantial crypto wallets) wants to add liquidity for the coin on Raydium, one of the major DEXes on Solana. Unfortunately, the process isn’t as clear as it could be, and DeFi is not forgiving of mistakes.
He initializes the liquidity pool at the wrong price. It seems like the plan was to add single-sided liquidity so that he could sell the coins off passively. However, he accidentally creates a pool with Raydium’s CPMM (Constant-Product Market Maker) instead of CLMM (Concentrated Liquidity Market Maker). No matter, that’s easily corrected…
Except a MEV bot notices the difference before the transaction is even confirmed, grabs a tranche of coins, and arbitrages the difference with the existing liquidity pool, netting a cool $1.5 million.
Oof. Well, there’s plenty more where that came from. Unfortunately, the next attempt doesn’t go any better. This time, the bot snipes a bigger batch of coins and pockets $10.5 million, bringing the total loss to $12 million, representing 40% of the $ROSS supply, just gone!
Third time’s the charm, and he initializes the pool correctly for 10% of the remaining coins. By this stage, though, the price is down 90%, crashed by the bot and panic sellers. Easy come, easy go.
But it doesn’t have to be this way.
COTI Fixes This
COTI uses garbled circuits to prevent attackers from exploiting transactions before they are confirmed on the blockchain. Garbled circuits are a fast, lightweight solution that process transactions in encrypted form, preserving end-to-end privacy. They offer a combination of speed and scalability that is unique for decentralized confidential computing (DeCC).
COTI enables confidential on-chain operations, including encrypted transfers and MEV-proof DeFi transactions, secure data storage, private multi-party interactions, and verifiable computations on encrypted data, all with optional disclosure for compliance! Now you can operate privately across everything from private DEX trading, and RWAs, to AI and ML operations with encrypted data sets.
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