DeFi arbitrage bots secret technique. How to fit everything into single transaction

<p>Arbitrage bots are complex and effective instruments that can generate you passive income. With growing of DeFi space they became increasingly popular. But in order to be profitable you should follow best practices and avoid typical mistakes.</p> <p>Usually DeFi trading bot consist of these components :</p> <ul> <li>off-chain script that monitors liquidity pools and founds arbitrage opportunities</li> <li>on-chain contract &mdash; smart contract that contains arbitrage logic</li> <li>hot wallet &mdash; keeps assets for arbitrage and takes profit</li> </ul> <p>Imagine the off-chain script found a profitable arbitrage opportunity somewhere in DeFi space and you need to take advantage of it ahead of your competitors. The arbitrage have to be done within single transaction otherwise you will waste a lot of time and likely lose battle to other bots.</p> <p>Typical arbitrage involves operations with ETH and ERC-20 tokens, so the first idea that comes to mind is to have smart-contract on-duty pre-deployed and funded with tokens and whenever the arbitrage opportunity found, the script will trigger the transaction with specific parameters</p> <p><a href="https://medium.com/coinmonks/defi-arbitrage-bots-secret-technique-how-to-fit-everything-into-single-transaction-ac9aa13df33f"><strong>Visit Now</strong></a></p>
Tags: DeFi arbitrage