Summary: Developed a Node.js application that identifies profitable arbitrage opportunities across multiple decentralized exchanges (DEXs), including Uniswap, QuickSwap, SushiSwap, and Balancer.
Objective: The goal was to create a bot capable of scanning liquidity pools on these DEXs to find arbitrage opportunities and execute profitable trades in real time.
Outcome: Successfully built and deployed the arbitrage bot. The bot continuously scans for profitable trades every 5 minutes and executes them only if the net profit (after accounting for gas fees) is positive. The project met all performance goals, reducing transaction costs and increasing trade profits.
Key Features:
Arbitrage Detection: The bot uses subgraphs from the Graph Protocol to retrieve liquidity pool details from Uniswap, QuickSwap, SushiSwap, and Balancer.
Data Storage: All arbitrage opportunities are stored in a MongoDB backend, including the token prices, liquidity pool details, and identified profitable opportunities.
Smart Contract Execution: When a profitable opportunity is found, the bot executes the trade using a smart contract written in Solidity. The bot ensures that the final output is profitable after gas fees, reverting the transaction if it is not.
Technologies and Tools Used:
Hardhat, Solidity, OpenZeppelin, Node.js, MongoDB, Graph Protocol - Subgraphs ( To query real-time data from various DEXs for liquidity pools and token prices)