How to Use ChatGPT Arbitrage MEV and generate 1.3ETH per Day

Summary

The transcript describes creating a bot using blockchain technology and smart contracts to automatically profit from cryptocurrency market inefficiencies. It provides code and instructions for configuring the bot to monitor transactions and exploit slippage opportunities. The video creator demonstrates the bot generating over 1 ETH in passive income over 24 hours and withdraws the profits back to his wallet.

Takeaways

• 😊 The video outlines how to create a bot using chatGPT that can generate passive income through crypto arbitrage
• 👨‍💻 The bot code operates on the principle of Maximal Extractable Value (MEV) by front running transactions on platforms like Uniswap
• 💰 The profit comes from the difference between the gas fees paid by the bot and the slippage from the original transaction
• 🔌 The bot runs on the Ethereum blockchain and needs MetaMask to interact with it
• ⚙️ The code is open source and can be customized, but modifications are the user's responsibility
• 🤖 Users need to deploy the smart contract code in Remix IDE and fund it to start the bot
• ♻️ The bot auto-trades based on configured parameters once started via specified functions
• 💵 It charges no fees and all profits go directly to the owner/deployer wallet
• 📈 The video demonstrates how over $1000 was made in passive profits in just 24 hours
• 🔒 API keys authenticate owners to manage and withdraw funds from the bot

Q & A

What is MEV and how does it work?

MEV stands for Maximal Extractable Value. It involves strategies like mempool observation, arbitrage, and front running on decentralized platforms like Uniswap and 1inch. Essentially, when a transaction with slippage is created, the MEV bot scans the mempool, sees the transaction, and creates a similar transaction with a higher gas price to execute it first, then resells at a higher price due to the slippage. The profit comes from the difference between the extra ether spent on gas and the gained slippage.

Why is it important to avoid suspicious transactions and platforms in the cryptocurrency world?

The world of cryptocurrencies is full of scammers. The best way to protect your assets is by avoiding suspicious transactions and platforms that are not official or verified, as these can lead to significant financial losses or theft of assets.

What are the requirements to run the MEV bot described in the video?

The bot requires more than 0.5 Ethereum due to the fact that smaller amounts do not have sufficient slippage to profit from. Additionally, the bot is designed to work on the Ethereum mainnet, and users must have MetaMask installed and connected.

How does one deploy the MEV bot?

To deploy the MEV bot, you need to use Remix Ethereum, an official platform for creating smart contracts in Solidity. After naming and pasting the provided code into a new file, compile the code with optimization enabled to reduce future gas spending, then navigate to the 'Deploy and run transactions' tab. Choose 'Injected provider - MetaMask' for environment, connect your wallet, and deploy using the aggressive gas option for faster transaction processing.

What functionalities does the control panel of the MEV bot offer?

The control panel allows the user to set the trade balance in Ethereum or percentage, start and stop the bot, withdraw funds to the creator's wallet, and securely identify the owner with a personal API key. These functions control how much Ethereum the bot uses for transactions, initiate or halt its operation, and manage the funds.

How does the MEV bot generate profit?

The MEV bot generates profit by front running transactions identified in the mempool that it can profit from due to slippage. It creates a transaction with a higher gas price to ensure it gets processed first, then benefits from the price difference. The profit is the difference between the cost of the higher gas and the slippage gained.

What steps should be taken before withdrawing funds from the MEV bot?

Before withdrawing funds, the user must first use the 'stop' function to halt the bot's activities. This ensures that all pending transactions are completed and no funds are in the middle of being used for front running. After confirming the transaction has stopped, the 'withdraw' function can be used to transfer funds back to the user's wallet.

Is the MEV bot's code open for modifications, and who is responsible for those modifications?

Yes, the bot's code is completely open source and free for modifications. However, any modifications made are the sole responsibility of the individual making them, meaning they must ensure the bot functions correctly after any changes.

How can one track the profit made by the MEV bot?

Profit can be tracked by refreshing the Ether scan page to view the bot's transaction history and balance. The video describes checking after 12 and 24 hours to observe the earnings, which are represented by the amount of Ethereum generated by the bot's activities.

What is the significance of using the aggressive option for gas when deploying the contract or withdrawing funds?

Using the aggressive option for gas ensures that the transactions, either for deploying the contract or withdrawing funds, are processed significantly faster. This is crucial in a competitive environment like Ethereum's blockchain, where transaction speed can impact the success of front running and arbitrage opportunities.