Flash Loan Arbitrage Bot

A simplified arbitrage bot that checks for opportunities across multiple DEXes and executes flash loan arbitrage trades.

Updates

New Features

• Custom Profit Recipient: You can now specify which address will receive the profits from arbitrage trades
• Price Validation: Added validation to filter out abnormal prices, especially for the WETH/DAI pair in Uniswap V3 0.01% pool
• Enhanced Logging: Better transaction result logging with detailed profit confirmation
• Simplified Deployment: Single script to deploy the contract and set the profit recipient
• Live Quoter Results: Real-time price quotes from exchanges to find profitable arbitrage opportunities
• Multi-Network Support: Deploy to mainnet, testnets, or local networks with the same scripts

Setup

Prerequisites

• Node.js
• Hardhat
• Ethereum wallet with ETH for gas
• Access to RPC endpoints

Installation

• Clone the repository
• Install dependencies:

npm install

• Copy .env.example to .env and configure your environment variables:

cp .env.example .env

• Update the .env file with your values:

# RPC URLs for different networks
MAINNETRPCURL=https://mainnet.infura.io/v3/yourinfurakey
SEPOLIARPCURL=https://sepolia.infura.io/v3/yourinfurakey
INFURAAPIKEY=yourinfuraapi_key
Local network
RPC_URL=http://127.0.0.1:8545
Private key for deployment - use a real funded key for mainnet/testnet deployments
PRIVATEKEY=yourprivatekeyhere
Etherscan API key for contract verification
ETHERSCANAPIKEY=youretherscanapi_key
Contract addresses - will be filled after deployment
ARBITRAGECONTRACTADDRESS=
DEX addresses - already filled with mainnet addresses
AAVEPOOLPROVIDER_ADDRESS=0x2f39d218133AFaB8F2B819B1066c7E434Ad94E9e
UNISWAPV2ROUTER_ADDRESS=0x7a250d5630B4cF539739dF2C5dAcb4c659F2488D
UNISWAPV3ROUTER_ADDRESS=0xE592427A0AEce92De3Edee1F18E0157C05861564
SUSHISWAPROUTERADDRESS=0xd9e1cE17f2641f24aE83637ab66a2cca9C378B9F
BALANCERVAULTADDRESS=0xBA12222222228d8Ba445958a75a0704d566BF2C8

Network Deployment Options

The project supports deployment to multiple networks:

• Local Hardhat Node (default): For development and testing
• Localhost: For a persistent local node
• Ethereum Mainnet: For production deployment
• Sepolia Testnet: For testing with test ETH before mainnet deployment

Deployment to Different Networks

Using the Hardhat Deployment Script

You can deploy to any configured network using the --network flag:

# Deploy to local Hardhat node (default)
npx hardhat run scripts/deploy.js
Deploy to localhost network
npx hardhat run scripts/deploy.js --network localhost
Deploy to Sepolia testnet
npx hardhat run scripts/deploy.js --network sepolia
Deploy to Ethereum mainnet (production)
npx hardhat run scripts/deploy.js --network mainnet

Using the Direct Deployment Script

For the direct deployment script, update the RPC_URL in your .env file:

# For localhost
RPC_URL=http://127.0.0.1:8545
For Sepolia testnet
RPCURL=https://sepolia.infura.io/v3/yourinfura_key
For Ethereum mainnet
RPCURL=https://mainnet.infura.io/v3/yourinfura_key

Then run:

node scripts/deploy-direct.js

Important Considerations for Mainnet/Testnet Deployment

• Use a Properly Funded Account:

- Replace the default private key with your own wallet's private key - Ensure the wallet has sufficient ETH for gas fees (higher for mainnet)

• Configure API Keys:

- Use your own Infura/Alchemy API keys - Set your Etherscan API key for contract verification

• Contract Verification:

- The deployment script will attempt to verify the contract on Etherscan - This only works on real networks (mainnet/testnet), not on local networks

• Gas Settings:

- The deployment scripts double the gas price for faster confirmation - You can adjust this in the scripts if needed for mainnet deployment

Complete Guide to Running the Bot

Step 1: Environment Setup

• Ensure your .env file is properly configured with:

- Your private key - RPC URL (mainnet fork or real mainnet) - API keys if using Infura/Alchemy for forking

• Verify all DEX router addresses are correct for your target network

Step 2: Start a Forked Network (for testing)

Start a local Hardhat node that forks from mainnet:

npx hardhat node --fork https://mainnet.infura.io/v3/YOURINFURAKEY

For production use, set your .env file with a real mainnet RPC URL.

Step 3: Deploy the Arbitrage Contract

Compile the contracts first:

npx hardhat compile

Deploy the contract using the direct deployment script:

npx hardhat run scripts/deploy-direct.js --network localhost

This will:

• Deploy the Arbitrage contract
• Set the profit recipient to your wallet address (from your PRIVATE_KEY)
• Output the new contract address to the console
• Automatically update your .env file with the contract address

Verify the contract address has been updated in your .env file.

Step 4: Run the Arbitrage Bot

Launch the bot with:

node arbitrageBot.js

The bot will:

• Initialize with settings from your .env file
• Connect to the blockchain network
• Load the Arbitrage contract
• Begin checking for arbitrage opportunities
• Execute trades when profitable opportunities are found
• Log all activities and results

Step 5: Monitor the Logs

The bot logs all activities to the console and to the log file specified in your .env file.

To watch the log file in real-time:

# On Linux/Mac
tail -f arbitrage.log
On Windows PowerShell
Get-Content arbitrage.log -Wait

The logs will show:

• Route checking between different exchanges
• Price differences found
• Profitable opportunities with expected profit
• Transaction execution results
• Any errors or issues encountered

Troubleshooting

Deployment Issues

• Compile errors: Make sure you've run npx hardhat compile before deployment
• Network connection: Verify your RPC_URL is accessible and responding
• Gas errors: Ensure your wallet has enough ETH for deployment
• Contract verification: If the contract address isn't updated in your .env, manually update it

Bot Execution Issues

• Contract connection: Verify the ARBITRAGECONTRACTADDRESS in your .env is correct
• Pricing anomalies: The bot has validation to filter out abnormal prices
• Transaction failures: Check logs for details on why transactions are reverting
• Profit threshold: You may need to adjust slippage settings if opportunities are being missed

Performance Optimization

• Adjust slippage: Lower values (0.1-0.3%) for more conservative trades, higher (0.5-1%) for more opportunities
• Network congestion: During high gas periods, increase your gas price for faster execution
• Token pairs: Focus on high-liquidity pairs for more stable arbitrage opportunities

License

MIT