In this article, I will show you how to create your own arbitrage bot for passive income. But before we begin, let me warn you about the dangers of falling for scams and losing your hard-earned money.
There are many people trying to sell you MEV bot code, promising huge profits. Do not click on any links or give away your private keys. Be cautious and do not fall for scammers.
Now, let’s dive into creating your own arbitrage bot. This bot will use decentralized finance platforms, such as Uniswap, to take advantage of arbitrage opportunities and earn passive income.
The bot works by sniffing the mempool for pending transactions within a block. It injects our transaction with a higher gas fee, allowing us to process our transaction first and then execute a sell order right after in the same block. This way, we profit from the slippage difference in the transaction.
Creating the bot is easier than you might think. You don’t need any coding experience. We will be using Remix, a web 3 application that allows us to develop, compile, deploy, and launch smart contracts coded in Solidity.
First, install the MetaMask browser extension and connect it to the Ethereum mainnet. Then, head over to Remix and create a new contract named ‘bot.sol’. Copy and paste the bot source code into the file.
After pasting the code, make sure to check the addresses for the Rarible (RAT) and Ether (ETH) tokens. Compile the bot using the 0.6.6 version of Solidity.
Next, deploy the contract using the injected provider in Remix. Make sure to fund the contract with Ethereum to snipe liquidity pools. The more Ethereum you deposit, the larger the transactions you’ll be able to sandwich and the more profit you’ll accumulate over time.
Once the contract is deployed, click ‘Start’ to enable the bot to start sniffing mempools. Set the gas fee to high for better results. Let the bot run for a desired period of time.
After running the bot, you can check the profits by clicking ‘Withdraw’. The bot will exit the liquidity pool and return the total amount of Ethereum, including the profit, back to your wallet.
Remember, the profits will fluctuate week to week. It’s important to stay updated and be cautious of scams. Enjoy making passive income with your own arbitrage bot!
If you have any questions or want to share your profits, feel free to leave a comment below. Don’t forget to subscribe for more profitable ways to make passive income using AI and web 3 tools.
