MEV and Slippage: How to generate 3Eths
TLDRThe video introduces a bot created with Chat GPT to generate passive income through cryptocurrency trading. It utilizes MEV (Maximal Extractable Value) principles, employing MLE and arbitrage strategies on Ethereum's decentralized platforms. The bot operates by front-running transactions with higher gas prices to profit from slippage. The setup process involves Metamask, Remix IDE, and deploying the open-source bot. The video demonstrates the bot's effectiveness, showing earnings of over 1.5 Ethereum in a day, highlighting its potential as a passive income source.
Takeaways
- π¨ Beware of scammers in the world of cryptocurrencies and avoid suspicious transactions to ensure asset safety.
- π€ The bot is designed to create passive income using Chat GPT and operates on the principle of MEV (Maximal Extractable Value).
- π MEV works with strategies like MLE (Miners Extractable Value) and Arbitrage, and involves front-running transactions on decentralized platforms like Uniswap.
- π° The profit comes from the difference between the additional Ether spent on gas and the slippage, by creating a transaction with a higher gas price to pass before others.
- π To configure the bot, you need Metamask installed and connected to the Ethereum mainnet chain.
- π Use Remix IDE, an official platform for creating smart contracts on Solidity language, to write and deploy the bot's code.
- π¦ The bot requires more than one Ethereum to operate effectively, as smaller amounts don't provide enough slippage for profit.
- π The bot is open source for audits and free from modifications, but any modifications are the user's responsibility.
- π§ The bot's control panel in Remix IDE allows you to set trade balance, start and stop transactions, and withdraw funds.
- π You can track the bot's performance and yields on platforms like Etherscan, which shows the smart contract's balance and transaction history.
- πΈ The earnings from the bot are a form of passive income, and you can withdraw your funds at any time without any additional fees.
Q & A
What is the main purpose of the bot discussed in the video?
-The main purpose of the bot is to create a passive income stream by utilizing MEV (Maximal Extractable Value) strategies such as arbitrage and front-running on decentralized platforms like Uniswap.
What is the significance of MEV in the context of the bot?
-MEV stands for Maximal Extractable Value, which is the principle the bot operates on. It involves looking for opportunities in the mempool (MLE) where transactions are waiting to be processed and then acting on them by creating a similar transaction with a higher gas price to ensure it gets processed first, generating profit from the slippage.
What precautions should be taken to ensure the safety of assets when dealing with cryptocurrencies?
-To ensure asset safety, one should avoid suspicious transactions from unknown wallets or unofficial platforms. It's crucial to only engage with reputable and secure sources when managing cryptographic assets.
What is Metamask and why is it required for the bot?
-Metamask is a digital wallet that allows users to interact with the Ethereum blockchain and manage their Ether and tokens. It is required for the bot because it connects to the Ethereum mainnet and enables the bot to manage and execute transactions.
How does one set up the bot using Remix Ethereum?
-To set up the bot, one must go to Remix Ethereum, an official platform for creating smart contracts in Solidity language. There, a new file is created, named, and the bot's code, provided in the video description, is pasted into it. After understanding and possibly modifying the code, the bot is compiled and deployed using the Remix interface.
What are the requirements for the bot to be profitable?
-The bot requires more than one Ethereum to function effectively as smaller amounts do not provide enough slippage for profit. The more Ethereum the bot manages, the greater the potential profit.
How does the bot's open-source nature benefit users?
-Being open-source means the bot's code is publicly available for review and auditing. This transparency allows users to trust the bot's functionality and ensures there are no hidden modifications that could compromise its performance or security.
What is the role of gas prices in the bot's operations?
-Gas prices are crucial for the bot's operations as they determine the transaction processing priority on the Ethereum network. By setting a higher gas price, the bot's transactions are processed before others, allowing it to successfully execute its front-running strategy.
How can one track the bot's performance and yields?
-The bot's performance and yields can be tracked using tools like Etherscan. By monitoring the smart contract's balance and transaction history, users can assess the bot's profitability and make decisions accordingly.
What is the process for withdrawing funds from the bot?
-To withdraw funds, the bot must first be stopped to ensure no active front-running is happening. Then, the 'withdraw' function is used to transfer the funds from the smart contract back to the owner's wallet. This process is executed within Remix Ethereum and confirmed via transaction on the Ethereum network.
How does the bot ensure it has no additional fees for the user?
-Since the user is the owner of the bot, there are no additional fees involved in the transactions. All profits go directly to the user, and the bot operates solely on the gas costs required for transaction processing on the Ethereum network.
Outlines
π€ Introduction to Cryptocurrency Bot Creation
The paragraph introduces the concept of creating a bot with Chat GPT to generate passive income and ease daily life. It begins with a caution about the prevalence of scammers in the world of cryptocurrencies and emphasizes the importance of avoiding suspicious transactions to ensure asset safety. The speaker then introduces the bot's operational principle, which is based on MEV (Maximal Extractable Value), involving strategies like MLE (Miners Extractable Value) and Arbitrage, particularly on decentralized Ethereum platforms. The bot works by scanning the mempool for transactions with slippage, creating a new transaction with a higher gas price to front-run and resell at a profit. The speaker also mentions the necessity of having Metamask and provides guidance on using Remix IDE for smart contract creation and deployment, highlighting the importance of optimizing gas spending for future benefits.
π Setting Up and Monitoring the Cryptocurrency Bot
This paragraph delves into the setup process of the bot, starting with obtaining a personal API key to authenticate as the bot's owner. It explains how to specify the amount of Ethereum the bot will work with and how to start the bot for front-running transactions. The speaker shares their experience of using the bot with two Ethereum, showing how to track yields over 12 and 24-hour periods. They demonstrate the profit made in a day and emphasize the passive nature of these earnings. The paragraph concludes with instructions on how to withdraw funds from the bot, detailing the steps to stop the bot, set the gas price aggressively, and confirm the transaction for a successful withdrawal. The speaker also encourages viewers to check the bot's balance on Etherscan and assures that there are no additional fees as the user is the owner of the bot.
Mindmap
Keywords
π‘MEV
π‘Slippage
π‘Chatbot
π‘Passive Income
π‘Metamask
π‘Remix Ethereum
π‘Smart Contracts
π‘Front-Running
π‘Gas Price
π‘Etherscan
π‘Arbitrage
Highlights
Creating a passive income-generating bot with Chat GPT
The importance of avoiding scams in the cryptocurrency world
Maximal Extractable Value (MEV) as the bot's operating principle
Utilization of MLE and Arbitrage strategies alongside front-running
Working with decentralized platforms on Ethereum like Uniswap
Transaction process within the Mempool (MLE) and how the bot takes advantage
Profit generation through gas price and slippage differences
Requirements of using more than one Ethereum for the bot
Open-source nature of the bot allowing for audits and modifications
Using Metamask and Remix IDE for bot configuration and deployment
Instructions for compiling and deploying the bot's smart contract
Control panel functions for managing the bot's operations
Personal API key for bot ownership and security
Front-running process with an example using 2 Ethereum
Tracking 12 and 24-hour yields for passive income results
Successful withdrawal of earnings back to the wallet
No additional fees for bot transactions as the owner
Checking the bot's balance on Etherscan for transparency