How to Use ChatGPT to Generate a Trading Bot for Decentralized Finance

Right, let’s see how much more we made. Nice, it’s a little over 1.85 Ethereum. That’s pretty insane. Hi guys, Julia Dev here. I decided to test the potential of ChatGPT, seeing if it can make me anything interesting or useful in decentralized finance. Basically, I asked it to generate a trading bot that uses DeFi liquidity pairs to take advantage of certain arbitrage opportunities for earning passive income. What it generated was insane. The bot allows you to automatically trade given tokens from the Ethereum blockchain without needing to manually transact through traditional methods. It takes advantage of decentralized finance platforms such as Uniswap to sandwich transactions for arbitrage. Basically, it sniffs mempools for transactions that are pending within a block, allowing us to inject our transaction with a higher gas fee higher than the transaction which is trying to be entered. This will allow us to process our transaction first, then process a sell order right after in the same block. Essentially, the pending transaction gets sandwiched between ours and we profit off slippage difference in the transaction. If this sounds complicated, don’t worry, it’s really not. I’ve been using this bot, earning passive income for weeks, and you don’t need any coding experience whatsoever since the script was generated entirely by ChatGPT. Let’s get started. So, make sure you have the MetaMask browser extension installed and you’re connected to the Ethereum mainnet. Now, head over to Remix. Remix is a web3 application that allows us to develop, compile, deploy, and launch smart contracts coded in the Solidity language. I’ll put a link to Remix in the description below. For the first time on Remix, it may ask you to agree to their terms. I’ve already done it. Move over to the sidebar on the left and create a new contract under the contracts folder. Name it ‘bot.sol’. In the description, I’ve included a link to the bot’s source code. Copy this code and paste it into the file ‘bot.sol’ you’ve just created. This is our bot. A co

uple of things to look at after pasting the code: lines 55 and 56. These should be the address for wrapped ether token. Feel free to check it on Etherscan to make sure. Back to Remix. Now that our bot file is ready, let's compile it. Click on 'Compile bot.sol'. Make sure the compiler version is set to 0.6.6 and the language is set to Solidity. Now click on 'Compile bot.sol' button and wait for the bot to compile. Now we're going to deploy this from our wallet. Head over to 'Deploy and run transactions' on Remix. Here, you're gonna want to select 'Injected provider' as the environment. Metamask will pop up, disconnect it to deploy the contract on the blockchain. You need to pay gas fees. Gas fees are commissioned on the Ethereum network for smart contract deployment. Now, the deployment utility is ready to go. Click 'Deploy'. Set the gas fees to high and click 'Confirm'. Now we wait for the transaction to confirm. Sweet, we can see here that it's confirmed, meaning our smart contract is deployed. Now you can see the four actions for our smart contract: 'Enable', 'Snipe', 'Withdraw', and 'Token Name' and 'Token Symbol'. For now, let's focus on 'Enable' and 'Snipe'. 'Enable' allows the bot to start sniffing the mempool. 'Snipe' stops the bot and transfers the funds back into your wallet. 'Token Name' and 'Token Symbol' aren't particularly relevant for now. Let's copy the smart contract address to make sure it's created. I'm gonna head over to Etherscan and paste it in. Yep, it was created successfully. The next step is to fund the contract with some Ethereum to snipe liquidity pools. I'll copy the smart contract address once more and head over to MetaMask. Make sure you've got the right address in there. You need to fund the contract with exactly 0.2 Ethereum or more for the bot to function properly. Obviously, the more you put in, the larger transactions you'll be able to sandwich and the more profit you'll be able to accumulate over time. So, for instance, say you're only depositing a few hundred dollars, you won't be able to create as much slippage in the price compared to inserting something like ten thousand dollars. There we go, transaction confirmed. Now my contract should have some Ethereum to work with. Perfect. Now the last step is to click 'Start'. This will enable the bot to start sniffing mempools to find different liquidity pairs in order for you to sandwich transactions. Let's set the gas fee to high and click 'Confirm'. There we go, transaction confirmed. Let's go to our MetaMask and see what we have now. As you can see, the balance from the bot is now in my wallet. This is only after running the bot for a little over a day. Unreal. I've even had weeks where I've made eight to ten Ethereum, sometimes more. The profits will fluctuate week to week. If you have any questions, feel free to ask me on Telegram. I've put my link below. Guys, share your profits in the comments below, drop a like, and don't forget to subscribe for more profitable ways to make passive income using AI and web3 tools.