Proposal: Blacklist of Arb Bot

General
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Introduction and Objectives

The arbitrage bot is the most sophisticated bot I have encountered. It operates across all exchanges, affects all tokens, functions on multiple chains, and is capable of high-frequency trading (HFT), making it particularly formidable. It boasts ultra-low latencies and a super-fast computing infrastructure. From a coding perspective, it is enviable.

The objective is straightforward: to curtail the detrimental impact of this arbitrage bot through a DAO-approved blacklist action on the following address: 0xb1b2d032AA2F52347fbcfd08E5C3Cc55216E8404.

Benefits to K9 Finance Community

This action will level the playing field in terms of arbitrage. While arbitrage is a fundamental aspect of price discovery, the dominance of this bot centralizes control in the hands of a single entity, draining millions from numerous projects.

Risks

I estimate removal of the arbitrage bot will reduce sell volume around $5k to $10k a day. However, arbitrage is not entirely eliminated and may be replaced by other bots or human traders or not at all. Mitigation to volume can be offset by the upcoming exchange listings.

Proposal Details

What: Blacklist the bot
Who: Multi-signature owners
Where: Not applicable
When: As soon as possible
How: Function 4 - ChangeBlackStatus

How It Works

Function 4 will prevent the wallet from buying or selling $KNINE. The bot will still be able to operate with other affected projects.

Impact Assessment

We have consulted with legal experts, who see no issues with taking this action from their perspective. While the impact will not eliminate arbitrage completely, it will create opportunities for human traders to engage in arbitrage themselves. The project may also manually respond to arbitrage gaps on exchanges, thereby preserving liquidity, typically through token buybacks. The market-making team will continue to inform us whenever such opportunities arise.

This is the first time in my crypto career that I have recommended a blacklist action. I do not make this proposal lightly and hope the community will support it.

MLS

17 Likes
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I support the purposal

7 Likes
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I support this proposal.

7 Likes
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I support this proposal

6 Likes
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I support this proposal.

6 Likes
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Is there an emergency vote to get this implemented asap? Instead of waiting till the next round top meeting.

I support this 100%

7 Likes
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Agreed can we speed this up?

6 Likes
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Agreed with what RD said. Anyway to call an emergency vote on this would be great.

6 Likes
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I get where this is coming from, but this bot is doing nothing wrong. It’s not acting maliciously, or targeting the project specifically. It’s just better at taking advantage of the opportunities that exist and will be leveraged by other actors if we blacklist it.

If this passes we could potentially make an enemy out of someone who appears to have the abilities to make things worse if they wanted to.

There will be a day when the chart will match expectations, until then take advantage of the opportunity to continue and accumulate at a discount. I do not support this proposal.

1 Like
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What are we waiting for ? Do it :man_shrugging:

8 Likes
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I disagree. We need to clear these Arb Bots. It’s taking everyone’s money at this point

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@MrLightspeed I just completed my investigation on this bot. It’s connected to the last arb bot you shot down in march

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I support the motion to ban the bot.

5 Likes
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Lets do an emergency vote. I saw what i needed to see.

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Not to mention that this bot is likely causing the current downtrend in the market. Id like for us to get out of this wedge. If not, maybe we can take advantage of it for another 2 weeks. Were just running out of wedge.

5 Likes
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Questions:

  • Will it be easy for the bot to get back?

  • Will the same measures be taken if other similar bots arrive?

  • Should we have a time schedule for how long we are making actions like this, maybe until we launch the dApp in Q3?

<< Anyhow >>
I support Mr. Lightspeed’s proposal to blacklist arbitrage bots. While I believe in a free market and generally oppose banning, this bot is negatively impacting the K9 project, our community, DAO members, and investors. At this early and vulnerable stage of our development, protecting the integrity of our market is crucial. Therefore, I endorse this measure to ensure a fair and stable trading environment for all participants.

Also, I do support in the act of action in lightspeed to resolve this matter, asap.

7 Likes
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I support this proposal

6 Likes
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Does this proposal have to wait for the round table to move to a vote?

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There is a lot of sediment in the community around a emergency vote

6 Likes
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I believe this should be looked at immediately and if approved implement asap. Maybe even before the buy contest ends. Let’s not wait another second on this. Lightspeed hit it on the nose. I understand we do have a process but we may want to consider emergency roundtable meetings when items that can seriously cause harm to the community and token arise. With such strong support by the community, this should be voted on today and implemented.

6 Likes