Arbitrage Trading Bot
Automated arbitrage bot that executes flash loan transactions across DEXs, purchasing tokens and selling for profit within single atomic transactions.
Problem
DeFi markets across different DEXes frequently have price discrepancies for the same token pairs. These arbitrage opportunities are ephemeral (lasting milliseconds) and require atomic execution — either the full trade is profitable or nothing happens. Manual trading can't compete with MEV bots.
Approach
I built a Solidity-based flash loan arbitrage bot that borrows capital atomically, scans multiple DEXes for price discrepancies, executes the optimal swap route, repays the loan, and pockets the profit — all within a single Ethereum transaction.
Key Engineering Decisions
Flash loans for zero-capital execution
Using flash loans eliminates the need to front capital. The bot borrows, trades, and repays in one transaction. If the trade isn't profitable after gas, the entire transaction reverts — zero risk of loss.
Multi-DEX routing with gas optimization
The routing engine evaluates permutations of DEX pairs and selects the path that maximizes profit after gas costs. Gas estimation uses EIP-1559 fee market data to avoid overpaying.
Single-transaction atomicity
Wrapping the entire arbitrage in one atomic transaction means the bot either captures the full profit or reverts cleanly — no partial states, no stranded funds.
Technologies