The Strategy contracts are not broken, but the market is (currently) inefficient. I pointed out yesterday that the contract can be triggered to buy an NFT by anybody as soon as it has enough in fees for a floor. Whoever triggers it can pocket the excess fees, if any, for themselves as a reward.
In a perfect world, MEV will take care of this by triggering purchases as soon as the reward is greater than the cost of gas to trigger.
However, our world is imperfect, and fees accumulated so quickly that the contract reached a 2x or even 3x multiple over floor in fees without a purchase being triggered, leaving an enormous opportunity for somebody to scalp rewards.
As more bots jump on the opportunity, the edge will subside and eventually reach an equilibrium of almost zero profit to be made by the triggering party.
x.com/0xQuit/status/1968735757...…
