How You Can Make $200k In Passive Income Farming Daily On Uniswap (MEV Bot) Working

Summary

In this YouTube tutorial, George teaches viewers how to create a 'front-running' bot for Uniswap, a decentralized exchange platform. The bot automatically trades Ethereum for tokens on Uniswap, taking advantage of pending transactions' slippage. By monitoring the mempool for transactions and inserting its own with a higher gas fee, the bot can execute trades before others, profiting from the price difference. The video guides users through setting up MetaMask, deploying the bot on Remix, and funding it for operation. It concludes with a demonstration of the bot's profitability, showing a significant return on investment.

Takeaways

• 😀 George introduces a method for making passive income using Uniswap.
• 🔍 The video explains how to build a 'front-running bot' to take advantage of slippage in transactions on Uniswap.
• 🤖 The bot sniffs the mempool for pending transactions and injects its own transaction with a higher gas fee to process first.
• 💡 The bot profits from the slippage difference by sandwiching the victim's transaction between its own buy and sell orders within the same block.
• 📈 An example is given where Alice's transaction to buy UNI tokens is front-run, resulting in a higher price for her and profit for the bot.
• 🛠️ Viewers are guided through the process of setting up the bot using MetaMask and Remix IDE, including deploying the smart contract.
• 🔗 Links to install MetaMask and access Remix IDE are provided in the video description.
• 💼 The bot's contract is funded with Ether to enable it to execute transactions and front-run liquidity pools.
• 🔄 The bot can be started and stopped, and profits can be withdrawn back to the wallet at any time.
• 📊 George shares his personal experience, showing a profit of 177% over a certain period, and encourages viewers to check their profits regularly.
• 💬 The video ends with an invitation for viewers to share their profits, ask questions, and stay updated by subscribing.

Q & A

What is the main topic of George's YouTube video tutorial?

The main topic of George's YouTube video tutorial is an easy method to make passive income using Uniswap by building a smart contract bot that front runs transactions.

What is a 'front running bot' as mentioned in the video?

A 'front running bot' is a smart contract that sniffs the mempool for pending transactions and injects its own transaction with a higher gas fee to be processed before the original transaction, allowing it to profit from the slippage difference.

Why might someone receive fewer tokens than expected in Uniswap?

Someone might receive fewer tokens than expected in Uniswap if they forget to decrease the slippage, which allows their transaction to be front run by bots that take advantage of the slippage.

What is slippage in the context of Uniswap transactions?

Slippage in Uniswap transactions refers to the percentage of an eventual price increase that a user accepts for the transaction to go through, which is necessary due to the price of tokens potentially changing before the transaction is confirmed.

How does the front running bot work according to the video?

The front running bot works by identifying pending transactions in the mempool, buying tokens at the current price, increasing the price, selling the tokens at the new higher price, and keeping the profit from the slippage difference, all within the same block.

What is the role of gas fees in the front running bot's operation?

Gas fees play a crucial role as the bot uses higher gas fees to prioritize its transactions over others in the mempool, ensuring its transactions are processed before the targeted transactions.

What tools or platforms are required to deploy the front running bot as per the tutorial?

To deploy the front running bot, one needs MetaMask installed and connected to the Ethereum mainnet, and Remix Ethereum IDE for developing, deploying, and launching smart contracts.

How does one fund the smart contract bot with ethers?

One can fund the smart contract bot with ethers by sending ethers to the contract's address from a wallet like MetaMask, ensuring the contract has enough funds to execute transactions and front run liquidity pools.

What are the actions available for the deployed smart contract bot?

The deployed smart contract bot has four actions: start, which begins the bot's operation; stop, which halts the bot's activity; withdrawal, which transfers funds back to the wallet; and owner, which identifies the contract's owner.

How often should one check the profit made by the bot?

The frequency of checking the bot's profit can vary, but the video suggests monitoring it after a few hours to a day to assess the earnings and decide whether to continue or withdraw funds.

What is the potential profit from using the front running bot as demonstrated in the video?

The potential profit from using the front running bot can be significant, with the video demonstrating a profit of around 177% in a day, although it's noted that profits can fluctuate.

Outlines

00:00

💼 Introduction to Front Running Bot on Uniswap

George introduces a YouTube tutorial on creating a passive income through a Uniswap front-running bot. He explains a common issue where users lose tokens due to slippage when not adjusted properly, which can be exploited by bots. The video will guide viewers on building a smart contract bot to automatically trade on Uniswap, sniffing pending transactions in the mempool, and front-running them by using a higher gas fee to process transactions first. An example is given where Alice's transaction is front-run, causing her to buy at a higher price, and the bot profits from the slippage. The tutorial requires MetaMask and Remix IDE for deploying the smart contract.

05:01

🔧 Deploying and Funding the Front Running Bot

The second paragraph details the process of deploying the front-running bot on the Ethereum blockchain. It involves creating a new file in Remix IDE, pasting the provided smart contract code, and ensuring the correct addresses for Wrapped Ether tokens. After compiling the contract for Solidity version 0.6.0, the user is guided to deploy it using MetaMask, connecting Remix to the Ethereum mainnet. Once deployed, the contract is funded with Ether to enable the bot to start sniffing the mempool for transactions to front-run. The paragraph concludes with the bot being started and the anticipation of profits over time, which are then shared with the viewers, demonstrating a significant return on investment.

Keywords

💡Uniswap

Uniswap is a decentralized cryptocurrency exchange (DEX) where cryptocurrencies can be exchanged without the need for a central authority. In the video, Uniswap is central to the tutorial as it is the platform where the front-running bot will execute trades, sniffing the mempool for pending transactions to exploit slippage for profit.

💡Passive Income

Passive income refers to earnings derived from a rental property, dividends, interest, or other sources where an individual does not have to be actively involved in the day-to-day operations. The video promises an 'easy method' to generate such income using Uniswap, suggesting that the bot can operate autonomously to generate profit.

💡Slippage

Slippage in the context of cryptocurrency trading refers to the difference between the expected price of a trade and the price at which it is actually executed, usually due to market volatility. The video explains how bots can exploit high slippage settings to 'front-run' transactions, buying tokens before a high-slippage transaction and selling them at a higher price.

💡Front Running

Front running in trading is the act of taking advantage of non-public, pending orders by executing similar trades ahead of them to profit from anticipated price movements. The video describes a bot that does this on Uniswap, identifying large transactions with high slippage and executing trades to profit from the price changes caused by these transactions.

💡Smart Contract

A smart contract is a self-executing contract with the terms of the agreement directly written into code. The video discusses creating a 'smart contract bot' that automatically trades on Uniswap, illustrating the use of smart contracts to automate the front-running strategy.

💡Mempool

The mempool is a pool of pending transactions waiting to be confirmed on the blockchain. The video's bot 'sniffs' the mempool to identify transactions that are not yet mined, allowing it to act on them before they are confirmed.

💡Gas Fee

On the Ethereum network, gas fees are the transaction fees required to perform operations on the blockchain. The video mentions increasing the gas fee to ensure that the bot's transactions are processed before others, which is a key part of the front-running strategy.

💡MetaMask

MetaMask is a browser extension that acts as a cryptocurrency wallet and allows users to interact with the Ethereum blockchain. The video instructs viewers to install MetaMask to connect to the Ethereum mainnet and interact with the smart contract bot.

💡Remix

Remix is an open-source platform that allows developers to write, deploy, and manage smart contracts. In the video, Remix is used to develop and deploy the front-running bot smart contract on the Ethereum blockchain.

💡Solidity

Solidity is a programming language used for writing smart contracts on the Ethereum blockchain. The video mentions using Remix to compile a smart contract written in Solidity, which is the code for the front-running bot.

💡Ether (ETH)

Ether, or ETH, is the native cryptocurrency of the Ethereum blockchain. The video uses Ether as the currency for transactions on Uniswap and as the medium to fund the smart contract bot, highlighting its role in facilitating blockchain transactions.

Highlights

Introduction to a method for making passive income using Uniswap.

Explanation of how forgetting to decrease slippage on Uniswap transactions can lead to receiving fewer tokens.

Discussion on transaction front running by bots exploiting slippage.

Introduction to building a smart contract bot for automatic trading on Uniswap.

Description of how the bot sniffs pending transactions in the mempool.

Explanation of how the bot injects transactions with higher gas fees to process first.

Example of front running with Alice's transaction to illustrate the concept.

Instructions on setting up MetaMask and connecting to the Ethereum mainnet.

Guidance on deploying smart contracts using Remix IDE.

Details on compiling and deploying the front-running bot contract.

Importance of verifying contract addresses on Etherscan for security.

Process of funding the contract with Ether to enable liquidity pool sniping.

Demonstration of starting the bot to sniff the mempool for transactions.

Sharing of profits made by the bot and the process of withdrawing earnings.

Discussion on the fluctuating profitability and weekly profit expectations.

Invitation for viewers to share their profits and engage with the community.

Transcripts

hello everyone my name is George and in

this YouTube video tutorial I'll be

explaining to you an easy method to make

passive income using Unis swap have you

ever made a transaction in Unis swap

where you forgot to decrease the

slippage if so you may have received

fewer tokens than you were expecting

this is because your transaction has

been front run by a bot who takes

advantage of the slippage so basically

in this video we'll be talking about how

to build a smart contract bot who does

the same my smart contract bot which

I'll call a front running bot will allow

us to automatically trade a given token

for the ethereum blockchain on Unis Swap

and 1 in without having to go through

the typical transaction methods this is

going to allow us to sniff the pending

transactions that are not yet mined on

the mempool and then it's going to allow

us to inject our transaction with a

higher gas fee than the transaction

which is entered now this will allow our

transaction to be processed first and

then we'll also send a sell order within

the same block so basically the victim's

trans trans action gets sandwiched

between ours and we make a profit from

the slippage difference in the

transaction let me explain more of what

front running is with an

example let's say that Alice wants to

exchange $1,000 worth of ethers for uni

token and let's suppose that the uni

price is $5 at the moment of the

transaction so if we do a simple

calculation Alice will receive 200 units

of the uni token but as the price of a

token may increase Unis swap requires

users to set slip Sage which means the

percentage of an eventual price increase

that you accept for the transaction to

go through now in this example if Alice

set slippage to 10% which means that she

agrees to pay up to 5.5 per unit token

that's about $181 tokens for $11,000 so

when Alice submits the transaction using

metamask the scenario will be like this

our bot will spot Alice's transaction

and buy uni token at the price of $5 and

in increase the price so Alice will buy

higher Alice will buy 181 units of uni

token at a price of

5.5 so our bot will sell all the tokens

bought on the first transaction and then

keep the profit which is in the example

it's about $91 minus gas fees all of

that in the same block so to start off

you'll need to have metamask installed

and connected to the ethereum main net

if you don't have metamask installed you

can find a link in the description on

how to install it to deploy our

contracts go to remix ethereum compiler

remix is a web application that allows

us to develop deploy compile and launch

Smart contracts coded in the solidity

language now you'll find the link to the

remix website in the description below

now head over to the left sidebar and

create a new file named bot. Soul now if

you look at the description I've

included a link to this code you need to

copy and paste that code this is our

front runner bot contract that we're

going to deploy a couple of things to

look at after pasting the code are line

55 and 56 if you check the addresses on

ether scan you'll see that these are the

addresses of wrapped ether

tokens okay so you can see it's the

official wrapped ether address it's

always a good idea to check that now

back to remix now that our bot file is

ready let's compile it on the side menu

click solidity compiler now as you can

see the contract is built for the

0.6.0 version of solidity under compiler

select the version

0.6.0 so it'll match our contract now

click on compile bot. soul and wait for

the bot to compile so now we deploy this

to our wallet head on over to deploy and

run transactions on remix under the

environment select injected web 3 to

connect remix to our metamask find

finally make sure uniswap botbot dossou

is selected under contract now the

deployment utility is ready click the

deploy button to publish our contract to

the ethereum blockchain we need to

confirm the creation of our contract by

paying some gas fees I always set gas

fees to high so it'll speed up the

transactions there's not a lot of

difference but click confirm and wait

for the transaction to be

mined transaction confirmed now our

contract is deployed so as you can see

here there are four actions for a

contract the start button will start the

bot sniffing the men poool withdrawal

will stop the bot and transfer funds

back to your wallet owner which Returns

the owner of the contract and stop will

stop the bot from sniffing the men poool

so let's copy the contract address and

make sure it was created head back to

Ether scan and paste

it okay it says it was successfully

created so the next step is to fund our

contract with some ethers to be able to

snipe liquidity pools I'm going to copy

this address and head back over to my

metamask now make sure you've copied the

right address you can fund the contract

with whatever amount you want but

obviously the more you put in the larger

the transaction you'll be able to front

run and the more profit you'll be able

to accumulate over time so for instance

say you're only front running with 0.5

ethers you won't be able to create as

much slippage in the price as if you

were inserting something like 10 ethers

sweet there we go okay so transaction

confirmed and the contract is funded we

can check that by following our contract

address on etherscan.io as you can see

our contract has one ethereum on its

balance which is basically the amount we

funded it with the last step is to click

Start now this will enable the bot to

start sniffing the men poool to find

different liquidity pairs in order for

you to front run the transactions I'll

see you guys in a couple hours

well guys I want to share the profit the

bot made for

me so I have something around 1.17 ether

which is around

177% you can see the transaction that

our bot made the internal transactions

tab as you can see here are the front

run transactions that our bot made over

the 10 hours there are a total of seven

transactions now if we calculate the sum

profit minus gas fees we get exactly

0.17 ethereum so I'll see you in 10

hours all right guys let's see how much

more we

made oh it's about 1.37 ether so

basically it took me about a day to gain

my deposit by more than a third

something close to 40% which isn't that

bad so the bot will continue to run

until you press the withdrawal button

the bot will then exit the liquidity

pool and will return back to your wallet

the ethers you entered initially plus

the profit so let's click it this will

charge us a little bit of gas I'll set

it to high again and then we click

confirm there we go the transaction's

confirmed so let's go to our metamask to

check and see what I've got now as you

can see the balance from the bot is now

in my wallet I've had had some weeks

where I've made five to six ethers

sometimes it's not always profitable and

profits fluctuate week to week but

usually I make two plus ethereum a week

now if you have any questions you can

contact me on telegram I've put the link

to my telegram below so guys share your

profits in the comments below hit the

like button if you found this video

valuable and don't forget to subscribe

so that you can stay

updated e