Flash Loan Arbitrage Bot

A DeFi arbitrage bot that leverages flash loans to execute zero-capital arbitrage across decentralised exchanges — borrow, swap, repay, and profit in one atomic transaction.

Flash Loan Sources:

• Aave V3 flash loans (Ethereum, Arbitrum, Polygon, Optimism)
• dYdX flash loans
• Balancer flash loans (no fee)
• Maker flash mint (DAI)
• Custom flash loan aggregator — picks cheapest source

Arbitrage Detection:

• Real-time price monitoring across 20+ DEXs
• Multi-hop path finder (2-hop, 3-hop, 4-hop routes)
• Mempool monitoring for upcoming price-moving transactions
• Cross-DEX spread calculator with gas and fee estimation
• Profit simulation before execution (dry run every opportunity)

Execution:

• Solidity smart contracts for atomic execution
• Flashbots/MEV-Blocker for private transaction submission
• Gas optimization — calldata compression and efficient routing
• Batch multiple arb opportunities in single transaction
• Auto-retry with escalating gas on failed txns

Supported DEXs:

• Uniswap V2/V3, SushiSwap, PancakeSwap
• Curve Finance, Balancer V2
• Camelot (Arbitrum), Aerodrome (Base)
• TraderJoe (Avalanche), SpookySwap (Fantom)

Risk Management:

• Minimum profit threshold (after gas + flash loan fee)
• Gas price ceiling — skip when gas is extreme
• Contract pause mechanism for emergencies
• Profit withdrawal automation
• Simulation mode for testing without capital

Tech Stack:

• Solidity (Foundry) smart contracts
• TypeScript searcher with ethers.js
• Redis for opportunity queue
• PostgreSQL for trade history
• Grafana monitoring dashboard
• Docker Compose deployment