Daily Passive Income with MEV bot for Binance Smart Chain in Solidity | Easy Guide

Summary

In this tutorial, the host walks viewers through creating a front-running bot for PancakeSwap on the Binance Smart Chain. The bot scans the mempool for transactions and uses a higher gas fee to execute its own transaction first, making a profit from the slippage between buy and sell orders. The video covers steps such as setting up MetaMask, using Remix to write and deploy the contract, and funding the bot with BNB. The tutorial emphasizes ease of use, transparency, and potential profitability, while advising caution to avoid risky contracts.

Takeaways

• 😀 The video demonstrates how to build a front-running bot for trading on PancakeSwap on the Binance Smart Chain (BSC), with the potential for future episodes on Ethereum.
• 😀 The bot works by scanning the mempool for pending transactions and injecting its own transaction with a higher gas fee to get processed first, enabling profit from slippage differences.
• 😀 The bot enables passive income opportunities by performing front-running attacks on decentralized finance (DeFi) exchanges like PancakeSwap.
• 😀 Viewers are encouraged to use MetaMask, a Web3 wallet extension, to connect to the Binance Smart Chain and interact with the contract on Remix Ethereum IDE.
• 😀 The tutorial emphasizes the importance of connecting to the correct network (Binance Smart Chain) via MetaMask before starting the bot setup.
• 😀 Remix is used to develop, compile, and deploy the front-running bot contract coded in Solidity. It allows for real-time interaction with the contract on the BSC.
• 😀 The bot contract scans for liquidity pools, targets transactions, and performs front-running by bidding one gwei higher than the transaction it intends to front-run.
• 😀 The tutorial provides a pre-made contract code, which viewers can copy and paste into Remix to avoid dealing with executable files and potential security risks.
• 😀 Funding the bot with BNB enables it to snipe liquidity pools, with larger investments offering higher profit opportunities from front-running transactions.
• 😀 The contract automatically returns 90% of profits to the user's wallet and retains 10% to continue the bot's operations for future sniping activities.
• 😀 The bot is described as highly profitable, with examples of users making substantial returns, though the creator advises playing conservatively and being cautious of risky contracts.

Q & A

What is the primary goal of the frontrunning bot discussed in the video?

The primary goal of the frontrunning bot is to intercept transactions in the mempool, inject a transaction with a higher gas fee, and execute it before the original transaction, allowing the bot to make a profit from slippage differences.

What is the difference between PancakeSwap on Binance Smart Chain (BSC) and Ethereum in terms of using this bot?

While the bot in the video is designed for PancakeSwap on the Binance Smart Chain, it is flexible enough to be configured for use on Ethereum. The main difference is the network the bot interacts with, but the core functionality remains the same.

What is the importance of MetaMask in the setup process?

MetaMask is essential because it acts as the wallet that connects to both the Binance Smart Chain network and the Remix IDE, allowing the user to interact with the smart contract and deploy the frontrunner bot.

How does the bot determine when to execute a transaction?

The bot scans the mempool for pending transactions and identifies opportunities to frontrun them by offering a higher gas price (one gwei higher) than the transaction it wants to intercept, ensuring its own transaction is processed first.

Why is it important to use the correct network in MetaMask when setting up the bot?

It is crucial to ensure that MetaMask is connected to the Binance Smart Chain network (not the Ethereum network) because the contract and the bot are designed to operate on BSC's PancakeSwap, which requires the correct network settings to work properly.

What steps are involved in deploying the frontrunner bot contract on Remix?

To deploy the contract, you need to create a new Solidity file in Remix, copy the provided contract code into the file, compile the contract with the correct Solidity version, connect MetaMask, and deploy the contract by confirming the transaction and paying a small gas fee.

What role does the 'guay' (gas price) play in the bot's functionality?

The 'guay' is a unit of gas, and in this context, the bot uses a gas price that is one gwei higher than the transaction it's trying to frontrun. This ensures the bot’s transaction gets prioritized and executed before the target transaction.

How does the bot generate profit from transactions?

The bot makes a profit by buying a token at a lower price before the victim’s transaction and then selling it at a higher price after. The slippage from the victim’s transaction is the source of profit.

What are the risks involved in using the frontrunner bot?

The main risks include potentially losing money if the bot snipes a non-profitable contract, such as a honeypot or scam coin. Additionally, higher investments can lead to larger profits but also increase exposure to risk.

How does the contract handle profits once a transaction is successfully completed?

Once the bot makes a profit, 90% of the earnings are sent back to the user's wallet, while the remaining 10% is kept in the liquidity pool to fund future transactions and sniping opportunities.