MEV and Slippage: How to Generate 3ETHs
TLDRThe video introduces a bot created with ChatGPT for generating passive income through MEV (Maximal Extractable Value) on Ethereum's decentralized platforms. It emphasizes the importance of asset safety and provides a step-by-step guide on deploying the bot using Metamask and Remix Ethereum. The bot operates by frontrunning transactions with higher gas prices and utilizing slippage for profit. The video demonstrates the bot's effectiveness by showing earnings after 24 hours and explains how to withdraw profits back to the wallet.
Takeaways
- 🚨 Cryptocurrency investments carry risks, especially from scammers and unofficial platforms.
- 🤖 The bot operates on the principle of MEV (Maximal Extractable Value) using strategies like arbitrage and frontrunning.
- 📈 MEV works with popular decentralized platforms on Ethereum, such as Uniswap and 1inch.
- 🔍 The bot scans the mempool for transactions with slippage, creating a higher-priced transaction to profit from the difference.
- 💼 To set up the bot, you need Metamask and access to Remix Ethereum for creating smart contracts.
- 🔗 Links to Metamask and Remix Ethereum are provided in the video description for easy access.
- 📋 Copy the provided code into a new file in Remix Ethereum to configure the bot.
- 💰 The bot requires more than 1 Ethereum to operate effectively due to slippage considerations.
- 🔄 The bot is open-source, allowing for audits and modifications, but users are responsible for any changes.
- 🛠️ The bot can be controlled via a control panel with functions like setting trade balance, starting and stopping operations, and withdrawing funds.
- 📊 The bot's performance can be tracked through Etherscan, which shows the balance and transaction history.
- 💸 The bot can generate significant passive income, as demonstrated by the example of earning 1.5 Ethereum in a day.
Q & A
What is the primary purpose of the bot described in the video?
-The primary purpose of the bot is to generate passive income by utilizing Maximal Extractable Value (MEV) principles, including strategies like mempool analysis, arbitrage, and frontrunning on decentralized platforms within the Ethereum network.
What are the risks associated with the world of cryptocurrencies mentioned in the video?
-The video mentions that the world of cryptocurrencies is full of scammers. The risk involves suspicious transactions from unknown wallets and unofficial platforms that can lead to loss of assets. It emphasizes the importance of avoiding such transactions to ensure the safety of one's assets.
What does MEV stand for, and how is it used by the bot?
-MEV stands for Maximal Extractable Value. The bot uses MEV by scanning the Ethereum mempool for transactions with potential profit, creating a new transaction with a higher gas price to ensure it gets processed first, and then reselling the transaction at a higher price to earn a profit from the slippage.
What are the key platforms the bot operates on?
-The bot operates on popular decentralized platforms on the Ethereum network, such as Uniswap and 1inch.
What is the role of Metamask in setting up the bot?
-Metamask is a digital wallet used to store and manage Ethereum and ERC20 tokens. In the context of the bot, it is used to connect to the Ethereum Mainnet and interact with the bot's smart contract for deploying, funding, and managing the bot's operations.
What is the Solidity language, and how is it related to the bot?
-Solidity is a programming language for writing smart contracts on the Ethereum blockchain. The bot's code is written in Solidity and is deployed as a smart contract on the Ethereum network using Remix Ethereum, which is an official platform for creating and deploying smart contracts.
Why is it necessary to use more than 1 Ethereum for the bot to function effectively?
-Smaller amounts do not generate enough slippage to make a profit. The bot requires more than 1 Ethereum because larger amounts provide greater opportunities for slippage, which in turn can result in higher profits.
How can one track the performance and收益 of the bot?
-The performance and收益 of the bot can be tracked by monitoring the Ethereum balance used for frontrunning on Etherscan, which provides real-time updates on the contract's balance and transaction history.
What is the significance of the 'Aggressive' gas option when deploying and interacting with the bot?
-The 'Aggressive' gas option helps transactions perform faster by prioritizing them on the Ethereum network. This is particularly useful for deploying the bot's smart contract and executing transactions for frontrunning, as it increases the chances of the bot's transactions being processed quickly and efficiently.
How does the bot ensure that it is only used by its owner?
-The bot uses a personal API key that identifies the owner. This key is required to start the bot and is kept confidential by the owner to prevent unauthorized access.
What is the process for withdrawing funds from the bot?
-To withdraw funds, the owner must first stop the bot, set the gas price to aggressive, and confirm the transaction. Once the stop transaction is successful, the owner can then use the 'Withdraw' function, set the gas to aggressive again, and confirm the transaction to transfer the funds back to their wallet.
Outlines
🤖 Introduction to Cryptocurrency Bot
The paragraph introduces the concept of creating a bot with ChatGPT aimed at generating passive income. It emphasizes the importance of avoiding scams in the world of cryptocurrencies and stresses the significance of adhering to safe asset management practices. The script then delves into the technical aspects of the bot, explaining its operation based on the principle of Maximal Extractable Value (MEV), which includes strategies like mempool analysis, arbitrage, and frontrunning on decentralized platforms like Uniswap and 1inch. The instructions guide the user through the setup process, starting with the installation of Metamask and proceeding to the creation and compilation of the bot's code on Remix Ethereum. The bot requires more than 1 Ethereum to function effectively, with the potential for higher profits as the amount of Ethereum used increases. The script assures that the bot is open-source, allowing for audits and modifications, but reminds users that they are responsible for the bot's performance after making changes.
🚀 Starting and Monitoring the Bot
This paragraph outlines the steps to start working with the bot, beginning with the retrieval of the API key and setting the amount of Ethereum the bot will use for frontrunning transactions. The user is guided to use 2 Ethereum as an example and to monitor the bot's performance over a 12-hour and 24-hour period. The results, as demonstrated in the script, show a profit of 0.89 Ethereum in less than 12 hours and more than 1.5 Ethereum in a full day, highlighting the potential of the bot as a source of passive income. The paragraph concludes with instructions on how to withdraw the earned funds back to the user's wallet, reiterating that there are no additional fees since the user is the sole owner of the bot. The user is directed to check the bot's balance on Etherscan, which should be zero after a successful withdrawal.
Mindmap
Keywords
💡MEV
💡Slippage
💡ChatGPT
💡Metamask
💡Remix Ethereum
💡Frontrunning
💡Gas Price
💡Smart Contract
💡Passive Income
💡Etherscan
💡Solidity
Highlights
Creating a bot with ChatGPT for passive income generation
The importance of avoiding scams in the cryptocurrency world
The principle of MEV (Maximal Extractable Value) in bot operation
Utilizing strategies like mempool analysis and arbitrage
Popular decentralized platforms used: Uniswap and 1inch
How transactions with slippage are scanned and utilized by the bot
The requirement of using more than 1 Ethereum for the bot
Open-source nature of the bot allowing for audits and modifications
Using Metamask and connecting to the Ethereum Mainnet Chain
Compiling and deploying the bot using Remix Ethereum
Functionality of the control panel for managing the bot
Setting the trade balance in Ethereum for frontrunning
Tracking 12 and 24-hour yields for profit assessment
Making over 1.5 Ethereum profit in just one day
Withdrawing funds back to the wallet without additional fees
The potential of this bot as a source of passive income