defiphoenix / arb-bot

Trading bot that utilizes Solidity contracts, in conjunction with decentralized exchanges, to execute token arbitrage opportunities on any EVM compatible blockchain.

Arbitrage Bot

Trading bot that utilizes Solidity contracts, in conjunction with decentralized exchanges, to execute token arbitrage opportunities on any EVM compatible blockchain.

Technologies

Javascript/Node.js, Solidity, Hardhat, Ethers.js, Waffle.

Setup

1. Install Node.js if needed.
2. npm install should install needed dependencies to the node_modules folder. Confirm with npx hardhat compile.
3. You're able to run tests against an ephemeral local network using npx hardhat test.
4. To spin up a persistent local network forked off mainnet, first create an https://www.alchemy.com/ account, and copy the api key to .env.
5. Next, run npx hardhat node.
6. In a separate terminal, you can run scripts against this local network using hardhat CLI, example: npx hardhat run script.js --network localhost
7. If desired to run a script against an ephemeral network, leave out --network localhost.
8. Determine if bot.js should be ran with Node.js or hardhat to properly talk with the local network.

Design

Tests

Each .js file in Tests serves a uniqie purpose, and allowed for test driven development.

LocalPriceManipulationTests.js: First forks the Ethereum network, specified by a block in the hardhat configuration file. This is achieved via the Alchemy API. We then execute a JSON RPC to the local hardhat test provider to impersonate a specific ethereum account; a whale with enough relevant ERC20 tokens to manipulate the price of a token pair on a DEX contract already deployed to our local test network. The manipulation of price by dumping a large amount of tokens is tested and verified. Note, this functionality is only used to create arbitrage opportunities within a local testing environment.

ArbitrageTests.js: Verifies functionality for the arbitrage contract, and how it interacts with various deployed contracts. In progress...

botTests.js: Verifies that the arb bot detects and appropriately acts on arbitrage opportunities as they arise. In progress...

TODOs

• Once all the below points are completed.. Make a new JS module (gitignored!) which will contain arb strategies that should not be shared ;)
• Watch or attend flash loan masterclass, see where it can be applied to this proj
• Finish porting over web3 refs to ethers. Unit test solidity code, and some of bot.js functionality.
• Split out solidity code into multiple files.
• Consider using front-end template here https://github.com/NomicFoundation/hardhat-hackathon-boilerplate/tree/master/frontend
• Research new stategies, create modular scripts for each blockchain, implement bot for DEXs on AVAX/FTM/MATIC, etc.
• Neat React front-end
• Find inspiration for data pipelines
• Learn about hardhat tasks, see where they'd have use here.
• Write up TDD here and setup instructions, maybe draw out FSM, write out proper workflow of setting up arb in simulation, executing bot, etc.
• Ideally make this super portable for new DEXs