Block Concentration Check

Available for the following blockchains: Solana, Ethereum, Base, Polygon, BSC, Blast, Avalanche, Arbitrum

What is Block Concentration Check?

Block Concentration Check is an advanced security feature in Divine that detects potential market manipulation and coordinated buying activities. It works across both EVM-based chains and Solana, analyzing trading patterns within individual blocks to identify suspicious concentrations of volume.

How does it work?

1. Data Collection: The system gathers detailed information about trades within each block, including:

   • Wallet addresses involved

   • Trading volumes

   • Timestamp of the block

2. Volume Analysis:

   • Calculates the total trading volume for the token

   • Determines the volume traded within each block

3. Concentration Detection: The system flags two main scenarios:

   • Multiple Wallet Concentration: When several wallets collectively trade more than 35% of the total volume in a single block

   • Single Wallet Concentration: When one wallet trades more than 70% of the total volume in a single block

4. Threshold Comparison:

   • Compares the calculated concentrations against predefined thresholds

   • Thresholds are carefully calibrated to catch manipulation while minimizing false positives

5. Automatic Blacklisting:

   • Wallets involved in flagged concentrated trading are automatically added to the blacklist

   • This helps prevent these wallets from participating in future trades

Why is this important?

1. Pump and Dump Prevention: Quickly identifies potential pump-and-dump schemes by detecting unusual trading patterns.

2. Coordinated Buying Detection: Spots instances where multiple wallets might be working together to manipulate the market.

3. Cross-Chain Protection: Provides security across both EVM-based chains and Solana, covering a wide range of tokens.

4. Rapid Response: Enables immediate action against potentially manipulative trading activities.

Key Features

• Multi-Chain Compatibility: Works on both EVM-based chains and Solana

• Dual Scenario Detection: Identifies both multi-wallet and single-wallet concentration

• Automatic Blacklisting: Swiftly acts against suspicious wallets

• Calibrated Thresholds: Uses carefully set limits to balance detection and false positives

• Real-Time Analysis: Processes trading data as it occurs for quick response

Benefits for Divine Users

• Enhanced Security: Protects against sophisticated market manipulation tactics

• Improved Market Integrity: Helps maintain fair and orderly markets for tokens

• Faster Threat Response: Quickly identifies and acts on suspicious trading patterns

• Cross-Chain Protection: Provides consistent security across multiple blockchain networks

• Increased Confidence: Users can trade with greater assurance knowing manipulative activities are being monitored and addressed

Limitations

While the Block Concentration Check is a powerful tool, it's important to note:

• It may occasionally flag legitimate high-volume trading (though this is minimized by careful threshold setting)