Transparency First: REX Price Anomaly Update

I. Executive Summary

On August 21, 2025, the REX/USDT trading pair in the PancakeSwap V3 liquidity pool on BNB Smart Chain was subjected to multiple MEV bot attacks.

This resulted in the price surging abnormally from the normal level of $0.04 to $43.05 within seconds — a 1,076x spike, creating extreme anomalies in candlestick data displayed on Binance Alpha.

Following a comprehensive on-chain transaction analysis, we confirm that this incident was caused by an external MEV attack. The REX project team, along with ordinary traders, was also a victim of this attack.

The attackers exploited insufficient liquidity and the absence of user slippage protections at the time, utilizing back-running arbitrage strategies for profit.

All relevant technical issues have since been fully remediated, and the REX trading pair has resumed stable and normal operation.

II. Event Background

📊 Basic Information

• Attack Time: August 21, 2025, 05:00–05:40 UTC
• Platform Attacked: PancakeSwap V3 (BSC)
• Impact Scope: Synchronized abnormal candlestick data on Binance Alpha market
• Liquidity at the time of attack: ~USD 300,000
• Current liquidity (post-reinforcement): ~USD 1,300,000
• Price anomaly observed: $0.04 → $43.05 (1,076x abnormal deviation)

🎯 Core Issue

This anomaly represents a typical MEV (Maximal Extractable Value) attack.

Multiple independent bot addresses exploited technical loopholes to execute arbitrage, resulting in severe distortion of price data.

III. On-Chain Attack Analysis

🔍 Case Study 1: Back-running Arbitrage Attack

Victim Transaction

• Tx Hash: 0x9642f6ca66751b69143f4258751d78af2c52c1c9d2ecf81c0963bd865460cef1
• Address: 0x33814Ba504594149920e6F4cFe99e48232Ce4F45
• Block Position: Position 1 (first transaction in block)
• Intent: Purchase REX tokens with 515.31 USDT
• Actual Result: Received only 76.78 REX
• Technical Misconfiguration:
• amountOutMinimum parameter set too loosely
• sqrtPriceLimitX96 = 0, meaning no effective price protection
• Impact: Transaction executed at an extreme abnormal price due to parameter misconfiguration, not reflecting the user’s actual intent

MEV Attacker Transaction

• Tx Hash: 0xf0ce00eb8a066e45634a422c2958364e182750cdacb82de6517e26e1ac043f74
• Address: 0x8D0fe8A009f06383aAebA87B6681CC29553662ba
• Block Position: Position 2 (immediately after victim)
• Strategy: Back-running arbitrage
• Profit Estimation:
  👉Arbitrage realized by selling at elevated price created by victim’s slippage
  👉Arbitrage profit: ~USD 510–512
  👉Execution cost: ~USD 3–5

🔍 Case Study 2: Sustained MEV Attack (30 Minutes Later)

Victim Transaction

• Tx Hash: 0xe446cdde3f39d65d5f6504fa3d669f8145708b6ca85da73ee666a81f4b1d4ccb
• Address: 0x33814Ba504594149920e6F4cFe99e48232Ce4F45
• Block: #58341514, Position 1
• Intent: Purchase REX tokens with 54.34 USDT
• Actual Result: Received only 72.68 REX
• Impact: Forced into abnormal execution price due to insufficient slippage protection

MEV Attacker Transaction

• Tx Hash: 0x47244504a8175058c3c3805cb7c42b6eb02d538961a6610963d7775a702e256b
• Address: 0x4707aE2909E6b06c1Ce547E7172aF49C77E7c0E7172 (different attacker)
• Block Position: Position 2 (directly following victim)
• Attack Strategy: Precise back-running arbitrage
• Execution: Immediately sold 68.19 REX, converting back to 54.15 USDT
• Key Observations:
  👉Different bot addresses confirm systematic MEV monitoring
  👉 Attacks repeated at 30-minute intervals, showing persistence
  👉 Execution timing highly precise (always immediately after victim transaction)

📈 Attack Timeline

05:00:32 UTC - First MEV attack (abnormal price spike observed)
       ↓ (30-minute interval)
05:31:48 UTC - Second MEV attack (repeated by different bot)
       ↓
Evidence: Indicates systematic MEV bot surveillance and repeated exploitation

IV. Complete Event Chain Analysis

⛓️ Cascading Effects of MEV Attacks

Stage 1: MEV Attack Disrupts Liquidity (05:00–05:30 UTC)

1. Multiple MEV bots executed back-running strategies.
2. These attacks consumed a large portion of liquidity and triggered violent price swings.
3. Pool depth dropped sharply from a healthy USD 300k baseline.

Stage 2: Arbitrage Executions in a Distorted Environment (05:30 UTC)

• Key Transaction: 0x4dbcdcf8345e3f81ae48858fc7b590306566c24335bdc22e54417dab886d3b76
• Trader Address: 0xeD71e6ec820656462601796050f3C2D4d8804272
• Timestamp: 05:30:12 UTC (30 minutes after initial MEV attack)
• Nature of Transaction: Atomic arbitrage totaling 4,500 USDT
• Executed Prices:
  👉Trade 1: $14,288.40 / REX
  👉Trade 2: $32,114.55 / REX
  👉Trade 3: $14,288.41 / REX
  👉Trade 4: $32,114.57 / REX
• Comparison: Against the normal market rate of $0.04, these abnormal executions represented a deviation of 357,210x to 802,863x.

🎯 Technical Analysis: Why Were Prices So Extreme?

Liquidity Environment:

1. MEV attacks had already severely damaged liquidity distribution.
2. Remaining liquidity was extremely thin, unable to support large trades.
3. Under such low liquidity, the AMM mechanism generated exponential price spikes.

Characteristics of Arbitrage Execution:

1. Atomic Transactions: Multi-step operations executed within a single block.
2. Professional Arbitrage Behavior: Exploiting price discrepancies across pools or paths.
3. Technical Sophistication: Complex strategy design and precise execution capabilities.

Key Findings:

• These extreme prices were not reflected in mainstream candlestick charts.
• This indicates they were not part of standard market discovery mechanisms.
• Instead, they represent technical arbitrage conducted in a liquidity-compromised environment.

📊 Timeline and Causality

05:00:32 - First MEV attack → Liquidity begins to deteriorate
05:30:xx - Second MEV attack → Liquidity further worsens
05:30:12 - Arbitrage trade → Extreme price executions under distorted conditions

V. Technical Root Cause Analysis

🎯 Technical Preconditions Enabling the Attack

1️⃣Insufficient Liquidity Depth

• At the time of the incident, pool liquidity was only ~USD 300k.
• PancakeSwap V3’s concentrated liquidity feature amplified the effect of thin depth.

2️⃣ Improper User Transaction Parameters

• Victims used the exactInputSingle function.
• amountOutMinimum parameter was set too loosely.
• sqrtPriceLimitX96 = 0, meaning no price protection limit.
• Absence of effective slippage safeguards.

3️⃣MEV Bot Arbitrage Mechanisms

• Multiple independent MEV bots were monitoring on-chain trades in real time.
• Executed back-running strategies to arbitrage immediately after user transactions.
• Leveraged precise control of block ordering (Position 1 → Position 2).

4️⃣AMM Price Mechanism Characteristics

• PancakeSwap V3 is extremely sensitive under low-liquidity conditions.
• A single large transaction can trigger exponential price distortions.
• No built-in circuit breaker mechanism to halt abnormal executions.

🔄 Attack Path Diagram

Victim initiates large transaction
        ↓
AMM under insufficient liquidity → severe price fluctuation
        ↓
MEV bots detect arbitrage opportunity
        ↓
Back-running arbitrage executed instantly
        ↓
Arbitrage profit realized + abnormal price data generated
        ↓
Candlestick charts reflect non-genuine extreme peaks

VI. Impact Assessment

💔 The REX Project Team Was Also a Victim

We emphasize: the REX project team, like ordinary traders, was also a victim of this MEV attack.

• Brand Reputation Damage: Abnormal price data distorted the market image of the token.
• User Experience Harmed: Some users suffered unreasonable transaction losses.
• Market Confidence Impacted: Abnormal candlesticks could be misinterpreted as intentional manipulation.
• Ecosystem Health Threatened: MEV attacks undermine fairness across the DeFi ecosystem.

📊 Quantified Impact Data

• Abnormal Price Multiplier: 1,076x ($0.04 → $43.05)
• Transactions Affected: At least 2 confirmed large-scale abnormal executions
• Number of Attackers: At least 2 independent MEV bot addresses identified
• Degree of Data Distortion: Binance Alpha candlesticks displayed extreme, non-genuine peaks

VII. Remediation Measures and Improvements

✅ Technical Enhancements Already Completed

1️⃣Substantial Liquidity Increase

• Before: USD 300,000
• After: USD 1,300,000
• Increase Factor: 4.33x strengthening
• Impact: Significantly reduced price impact sensitivity

2️⃣Technical Issue Identification

• Completed in-depth analysis of MEV attack patterns
• Identified the precise technical conditions that enabled the attack
• Established methods to mitigate similar risks in the future

3️⃣Operational Monitoring

• Deployed real-time monitoring of abnormal price movements
• Established a community-based early warning mechanism
• Ensured that similar issues can be detected immediately

🛡️ Ongoing Preventive Measures

1️⃣User Risk Education

• Published risk advisories on MEV attacks
• Provided best-practice guidelines for slippage settings
• Recommended the use of MEV-protected trading aggregators

2️⃣Technical Ecosystem Collaboration

• Collaborating with DEX platforms such as PancakeSwap
• Participating in the development of industry-wide MEV protection standards
• Supporting advancements in DeFi security technologies

3️⃣Continuous Liquidity Optimization

• Maintaining sufficient liquidity depth
• Deploying liquidity across multiple fee tiers
• Regularly assessing and adjusting liquidity strategies

Commitment to Transparency and Trust

We want to reassure our community that the REX project team has been fully transparent throughout this incident. We were victims of this MEV attack just like regular users, and we acted swiftly to strengthen liquidity and monitoring. Moving forward, we remain committed to protecting our community, ensuring fair trading, and building long-term trust in REX.

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