MEV and Slippage: How to Generate 3ETHs

0xKembeks
6 Apr 202407:55

TLDRThe video introduces a bot created with ChatGPT for generating passive income in the world of cryptocurrencies. It emphasizes the importance of avoiding scams and securing assets. The bot operates on the MEV principle, utilizing strategies like arbitrage and frontrunning on decentralized platforms like Uniswap and 1inch. The video provides a step-by-step guide on setting up the bot using Metamask and Remix Ethereum, and highlights the bot's profitability and open-source nature. The creator demonstrates deploying the bot, starting it with 2 Ethereum, and tracking yields, showing significant earnings after 24 hours. The video concludes with instructions on withdrawing profits and encourages viewers to subscribe for more content on coding and WEB3.

Takeaways

  • 🚨 Beware of scams in the world of cryptocurrencies and avoid suspicious transactions for asset safety.
  • 🤖 The bot operates on the principle of MEV (Maximal Extractable Value) using strategies like mempool analysis, 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 new transaction with a higher gas price to profit from the price difference.
  • 🔗 Use Metamask for asset management and Remix Ethereum for creating smart contracts in Solidity language.
  • 🔧 The bot requires more than 1 Ethereum for operation due to the need for sufficient slippage to make a profit.
  • 📋 Copy the provided code from the description into a new file in Remix Ethereum to configure the bot.
  • 🛠️ Compile and deploy the bot on the Ethereum Mainnet using Remix, and connect it to your Metamask wallet.
  • 💰 The bot's profit is the difference between the additional ether spent on gas and the slippage.
  • 🔄 Monitor the bot's performance and yields on Etherscan and adjust settings as needed.
  • 🏦 Withdraw profits and stop the bot before making changes to avoid interference with ongoing frontrunning activities.

Q & A

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

    -The primary purpose of the bot is to generate passive income by utilizing MEV (Maximal Extractable Value) strategies, such as arbitrage and frontrunning, on decentralized platforms like Uniswap and 1inch.

  • What does MEV stand for and how does it work?

    -MEV stands for Maximal Extractable Value. It involves scanning the 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 profit from the slippage.

  • Why is it important to avoid suspicious transactions in the world of cryptocurrencies?

    -Avoiding suspicious transactions is crucial to protect your assets from scammers. It's the best way to ensure the safety of your funds and avoid falling victim to unofficial platforms and fraudulent activities.

  • What are the necessary tools to configure and use the bot?

    -To configure and use the bot, you need Metamask for wallet management and Remix Ethereum for creating and deploying smart contracts written in Solidity language.

  • How much Ethereum is required to use the bot effectively?

    -The bot requires more than 1 Ethereum because smaller amounts don't offer enough slippage for profitable frontrunning. The more Ethereum the bot uses, the greater the potential profit.

  • How does the bot's open-source nature benefit users?

    -The open-source nature of the bot allows for audits, ensuring transparency and security. It also enables users to make modifications for free, although they are responsible for the functioning of any modified versions.

  • What is the process of deploying the bot's smart contract?

    -To deploy the smart contract, you compile the code in Remix Ethereum with optimization enabled, then deploy it using the 'Injected Provider - Metamask' in Remix's 'Deploy and Run transactions' tab.

  • How can you monitor the bot's performance and earnings?

    -You can monitor the bot's performance and earnings by tracking its transactions and balance on Etherscan, using the transaction ID and the control panel within Remix Ethereum.

  • What are the key functions of the bot's control panel?

    -The control panel allows you to set the trade balance in Ethereum or percentage, start and stop the bot's operation, withdraw funds back to the creator's wallet, and manage the bot's API key for identification.

  • How much profit can be expected from using the bot?

    -The video example shows a profit of 0.89 Ethereum in less than 12 hours and more than 1.5 Ethereum in 24 hours, which translates to significant earnings in a short period.

  • What is the process to withdraw funds from the bot?

    -To withdraw funds, you must first stop the bot, set the gas price to aggressive, confirm the transaction, and then use the 'Withdraw' button in the control panel. The bot will transfer the funds back to the creator's wallet without any additional fees.

Outlines

00:00

🤖 Introduction to Cryptocurrency Bot and MEV

The speaker introduces a bot created with ChatGPT designed to generate passive income by navigating the world of cryptocurrencies. They caution against scams and emphasize the importance of asset safety. The bot 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 speaker guides the audience on setting up the bot using Metamask and Remix Ethereum, highlighting the need for more than 1 Ethereum to operate profitably. They also stress the bot's open-source nature, allowing for audits and modifications, with a responsibility clause for the user. Detailed instructions are provided on deploying the bot, including compiling the code, connecting to the Ethereum Mainnet, and using the Remix environment to interact with the bot.

05:07

🚀 Starting and Monitoring the Cryptocurrency Bot

The speaker continues by explaining how to start working with the bot, emphasizing the need to generate a key for authentication and specifying the amount of Ethereum the bot will use for frontrunning. They demonstrate the process of starting the bot with 2 Ethereum, monitoring the wallet balance, and confirming transactions on Etherscan. The speaker then tracks the bot's performance over a 12-hour and 24-hour period, showcasing significant earnings. After successfully withdrawing the earnings back to the wallet, they remind the audience that the bot operates without additional fees as the user is the sole owner. The video concludes with a call to action to subscribe for more content on coding and WEB3 technologies.

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 utilizing strategies like arbitrage and frontrunning. In the context of the video, MEV is central to the operation of the bot created with ChatGPT, which aims to generate passive income by capitalizing on these strategies. The bot scans the mempool for transactions with slippage and uses a higher gas price to execute its own transactions first, thereby profiting from the price difference.

💡Slippage

Slippage in the context of the video refers to the price change that occurs between the time a trade is initiated and when it is executed. This is a common occurrence in decentralized exchanges like Uniswap and 1inch, which are mentioned in the script. Slippage is a key element that the bot created with ChatGPT exploits for profit. By frontrunning transactions with slippage, the bot can buy and sell at a higher price, generating profit for the user.

💡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 essential as it is the tool through which the user connects their Ethereum assets to the bot. It is used to deploy the bot as a smart contract and to manage the funds that the bot will use for frontrunning transactions.

💡Remix Ethereum

Remix Ethereum is an open-source platform that provides an interface for developers to create, compile, and deploy smart contracts on the Ethereum blockchain using the Solidity programming language. In the video, Remix Ethereum serves as the environment where the user writes and deploys the bot's code, interacts with the smart contract, and manages its functions.

💡Frontrunning

Frontrunning in the context of the video is a strategy used by the bot to exploit transactions with slippage. By offering a higher gas price, the bot's transaction is prioritized and executed before the original transaction in the mempool. This allows the bot to buy or sell cryptocurrencies at a more favorable price, generating profit from the difference. Frontrunning is a controversial practice as it can be seen as taking advantage of others' transactions for personal gain.

💡Gas Price

Gas price in the Ethereum network refers to the amount of Ether (ETH) that a user is willing to pay for each unit of gas, which is a measure of computational work required to execute a transaction or smart contract. A higher gas price can lead to faster transaction processing. In the video, the bot uses a higher gas price to ensure its transaction is processed before others, allowing it to frontrun and profit from slippage.

💡Solidity

Solidity is a programming language specifically designed for writing smart contracts on the Ethereum blockchain. It is a statically typed language that provides features for contract development, including data structures, control structures, and error handling. In the video, the user is instructed to use Remix Ethereum, which supports Solidity, to create and deploy the bot's smart contract.

💡Smart Contract

A smart contract is a self-executing contract with the terms of the agreement directly written into code on the blockchain. These contracts automatically enforce and execute the obligations and rules as programmed without the need for intermediaries. In the video, the bot is deployed as a smart contract on the Ethereum blockchain, allowing it to autonomously manage the frontrunning strategy and interact with the user's Ethereum assets.

💡Etherscan

Etherscan is a blockchain explorer for the Ethereum network that allows users to view and track transactions, smart contracts, and balances associated with Ethereum addresses. In the video, Etherscan is used to monitor the deployment of the bot's smart contract, check the transaction status, and track the bot's balance and earnings.

💡Passive Income

Passive income refers to earnings that are generated with minimal ongoing effort after an initial setup or investment. In the context of the video, the bot is designed to create a source of passive income for the user by automatically executing frontrunning strategies on the Ethereum network, generating profits from slippage without the need for constant user intervention.

💡Aggressive Gas

Aggressive gas refers to setting a higher gas price to prioritize transactions on the Ethereum network. By choosing the aggressive gas option, transactions are processed faster, which is beneficial for the bot's frontrunning strategy as it allows the bot to execute its transactions before others and capitalize on slippage.

Highlights

Creating a bot with ChatGPT for generating passive income

The importance of avoiding scams in the cryptocurrency world

The concept of MEV (Maximal Extractable Value) and its role in the bot

Utilizing strategies like mempool analysis, arbitrage, and frontrunning

Compatibility with decentralized platforms on Ethereum like Uniswap and 1inch

How the bot benefits from transactions with slippage in the mempool

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

Open-source nature of the bot allowing for audits and modifications

Using Metamask and Remix Ethereum for bot configuration and deployment

Instructions for compiling and deploying the bot's smart contract

Functionality of the bot's control panel and its various buttons

Setting the trade balance in Ethereum and starting the bot's operation

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

Achieving a profit of more than 1.5 Ethereum in a single day

Withdrawing funds from the smart contract back to the wallet

The bot's lack of additional fees as the user is its sole owner

Encouragement to subscribe for more content on coding and WEB3

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