MEV and Slippage: How to Generate 3ETHs

0xKembeks
6 Apr 202407:55

TLDRThe video introduces a bot created with ChatGPT to generate 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 configuring the bot using Metamask and Remix Ethereum. The bot operates by frontrunning transactions with higher gas prices and profiting from slippage. The video demonstrates deploying the bot, setting trade balances, and tracking yields, showcasing a significant profit within 24 hours. It concludes with instructions on withdrawing earnings back to the wallet.

Takeaways

  • 🚨 Cryptocurrency space is rife with scammers; avoid suspicious transactions to safeguard assets.
  • 🤖 The bot operates on the MEV (Maximal Extractable Value) principle, utilizing strategies like mempool analysis and arbitrage.
  • 💼 MEV works with popular decentralized platforms on Ethereum, such as Uniswap and 1inch.
  • 📈 The bot identifies transactions with slippage in the mempool and creates a higher-priced transaction to profit from the difference.
  • 🔗 Use Metamask for asset safety and to interact with the bot.
  • 📋 Compile and deploy the bot's smart contract on Remix Ethereum using Solidity language.
  • 💰 A minimum of 1 Ethereum is required for the bot to function effectively due to slippage considerations.
  • 🔄 The bot's open-source nature allows for audits and modifications, with the user being responsible for any changes.
  • 🛠️ Configure the bot with controls like setting trade balance, starting and stopping operations, and withdrawing funds.
  • 📊 Track the bot's performance through Etherscan for real-time updates on yields and balances.
  • 💸 Potential for significant passive income is highlighted, with an example of earning over 1.5 Ethereum in a day.

Q & A

  • What is the primary purpose of the bot mentioned in the script?

    -The primary purpose of the bot is to generate passive income for the user by utilizing the principles of MEV (Maximal Extractable Value) on decentralized platforms like Ethereum.

  • What are the key strategies involved in MEV that the bot uses?

    -The bot uses strategies such as mempool analysis, arbitrage, and frontrunning to identify and capitalize on transactions with slippage on platforms like Uniswap and 1inch.

  • Why is it important to have more than 1 Ethereum for the bot to function effectively?

    -Smaller amounts do not provide enough slippage to make a profit, so having more than 1 Ethereum is necessary for the bot to generate significant收益.

  • How does the bot ensure it executes transactions before others in the mempool?

    -The bot creates a transaction for the same amount as the identified transaction but with a higher gas price, allowing it to be processed first.

  • What is the role of Metamask in setting up the bot?

    -Metamask is used to store and connect the user's Ethereum wallet to the bot, allowing the bot to access the required Ethereum for frontrunning transactions.

  • What is the significance of the 'Injected Provider - Metamask' option in Remix?

    -The 'Injected Provider - Metamask' option in Remix allows the bot to connect directly to the user's Ethereum wallet, facilitating the deployment and interaction with the smart contract.

  • How does the bot calculate its profit?

    -The bot calculates its profit as the difference between the additional Ether spent on gas and the slippage value obtained from reselling the transaction at a higher price.

  • What are the main functions of the control panel of the bot?

    -The control panel allows the user to set the trade balance, start and stop the bot, withdraw funds, and view the bot's balance and transactions.

  • How much profit can be expected from the bot in a 24-hour period?

    -The script mentions that the bot made more than 1.5 Ethereum in a 24-hour period, which could be equivalent to over $2,000 depending on the Ether exchange rate at the time.

  • What is the role of the personal API key in the bot's operation?

    -The personal API key identifies the user as the bot's owner, enabling them to interact with and control the bot's functions.

  • How can a user verify the successful deployment of the bot on the Ethereum network?

    -After deploying the bot, the user can check the transaction ID on Etherscan to confirm that the smart contract has been successfully deployed and is operational.

Outlines

00:00

🤖 Introduction to Crypto Bot and Safety Measures

The paragraph introduces the concept of creating a bot using ChatGPT for generating passive income. It emphasizes the importance of being cautious in the world of cryptocurrencies due to the prevalence of scammers. The best practice is to avoid suspicious transactions and unofficial platforms. The script then delves into the technical aspects of the bot, which operates on the principle of Maximal Extractable Value (MEV), utilizing strategies like mempool analysis, arbitrage, and frontrunning on decentralized platforms like Uniswap and 1inch. The setup process involves using Metamask and Remix Ethereum, and the code for the bot is open-source for modifications and audits. The bot requires more than 1 Ethereum to operate effectively due to slippage considerations, and the more Ethereum used, the greater the potential profit. Detailed instructions are provided for deploying the bot on the Ethereum Mainnet.

05:07

🚀 Starting and Monitoring the Crypto Bot

This paragraph outlines the steps to start working with the bot, beginning with obtaining an API key and specifying the amount of Ethereum the bot will use for frontrunning. The bot instantly analyzes the user's wallet balance and requires confirmation of the connection to the Ethereum chain. The user can track the bot's performance over 12 and 24-hour periods to monitor yields. The results show significant earnings within a day, which are considered passive income. The paragraph concludes with instructions on how to withdraw funds from the bot back to the user's wallet, highlighting that there are no additional fees since the user is the sole owner of the bot. The user is encouraged to check the bot's balance on Etherscan, which should be zero after a successful withdrawal.

Mindmap

Keywords

💡MEV

MEV stands for Maximal Extractable Value, a concept in the world of cryptocurrencies that refers to the potential profit that can be extracted from the Ethereum network by manipulating transactions in the mempool. In the context of the video, MEV is utilized by the bot to identify and prioritize transactions that can yield profit, particularly through strategies like frontrunning and arbitrage. The bot operates by scanning the mempool for transactions with slippage, 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 profit from the difference.

💡Slippage

Slippage is a term used in the context of cryptocurrency trades to describe the difference between the expected price of a trade and the actual price at which it is executed. In the video, slippage is a crucial element for the bot's profitability. When a user creates a transaction with a certain amount of slippage, it provides an opportunity for the bot to intervene, execute the transaction at a higher price, and profit from the difference. The bot's strategy relies on transactions with sufficient slippage to make a profit.

💡ChatGPT

ChatGPT is an AI language model developed by OpenAI, which is capable of generating human-like text based on the prompts it receives. In the video, ChatGPT is used to create a bot that can operate in the cryptocurrency space, specifically to generate passive income through MEV strategies. The bot is programmed to scan the Ethereum mempool, identify profitable transactions, and execute them in a way that maximizes profit from slippage.

💡Metamask

Metamask is a digital wallet that allows users to store, manage, and interact with digital assets and smart contracts on the Ethereum blockchain. In the video, Metamask is used as the primary tool for users to connect their Ethereum assets to the bot. It is essential for deploying and interacting with the smart contract that the bot runs on, as well as for funding the bot's operations with Ethereum.

💡Remix Ethereum

Remix Ethereum is an open-source platform that provides users with a development environment to create, deploy, and test smart contracts on the Ethereum blockchain using the Solidity programming language. In the video, Remix Ethereum serves as the platform where users can write and deploy the bot's smart contract. It is through Remix that users can compile the bot's code and interact with the Ethereum network to deploy and manage the bot's operations.

💡Frontrunning

Frontrunning in the context of the video refers to a strategy used by the bot to prioritize its transactions over others by offering a higher gas price. This allows the bot to execute transactions before others in the mempool, which is crucial for profiting from MEV. The bot frontruns transactions with slippage, buying or selling assets at a higher price and then reselling them to make a profit.

💡Gas Price

Gas price in the Ethereum network is the amount of Ether (ETH) that a user is willing to pay for each unit of gas, which is a measure of the computational effort required to execute a transaction or smart contract. In the video, the bot uses a higher gas price to ensure that its transactions are processed before those with lower gas prices, which is key to its strategy of frontrunning and profiting from MEV.

💡Smart Contract

A smart contract is a self-executing contract with the terms of the agreement directly written into code. It is designed to facilitate, verify, and enforce the negotiation or performance of a contract. In the video, the smart contract is the technical foundation of the bot. It is deployed on the Ethereum blockchain and programmed to execute transactions that maximize MEV profits. Users interact with this smart contract through Metamask and Remix Ethereum.

💡Passive Income

Passive income refers to earnings derived from a rental property, dividend income, or any other business-related income that continues to flow in without much effort on the part of the individual receiving the income. In the context of the video, the bot is designed to generate passive income for the user by automatically executing transactions that profit from MEV. The user does not need to actively manage these transactions once the bot is set up and running.

💡Etherscan

Etherscan is a blockchain explorer for the Ethereum network that allows users to view and analyze transactions, addresses, and smart contracts. In the video, Etherscan is used to track the deployment of the bot's smart contract, monitor its balance and transactions, and confirm the successful execution of the bot's operations. It serves as a verification tool to ensure that the bot is functioning as intended and to track its profitability.

💡Solidity

Solidity is a programming language for writing smart contracts on the Ethereum blockchain. It is a contract-oriented, high-level programming language that is similar to JavaScript. In the video, the bot's code is written in Solidity, which is then compiled and deployed on the Ethereum network using Remix Ethereum. Solidity is crucial for creating the functional logic that allows the bot to operate and generate passive income.

Highlights

Creating a bot with ChatGPT for passive income generation

Importance of avoiding scams in the cryptocurrency world

The concept of MEV (Maximal Extractable Value) explained

Utilizing strategies like mempool analysis and arbitrage

Working with decentralized platforms on Ethereum such as Uniswap and 1inch

How transactions with slippage in the mempool can be exploited for profit

The requirement of using more than 1 Ethereum for the bot to be profitable

The open-source nature of the bot allowing for audits and modifications

Using Metamask and Remix Ethereum for bot configuration and deployment

Compiling and deploying the bot on the Ethereum Mainnet

Control panel functions like setting trade balance, starting, stopping, and withdrawing

Tracking 12 and 24-hour yields for the bot's performance

Achieving a profit of 0.89 Ethereum in less than 12 hours

Making more than 1.5 Ethereum in a single day

Withdrawing profits back to the wallet without additional fees

The potential of this bot as a source of passive income

Instructions for subscribing to the channel for more content on coding and WEB3

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