MEV and Slippage: How to generate 3Eths

Jaramy MEV Web
12 Apr 202407:55

TLDRThe video introduces a bot created with Chat GPT to generate passive income through cryptocurrency trading. It utilizes MEV (Maximal Extractable Value) principles, involving MLE and arbitrage strategies, to front run transactions on Ethereum's decentralized platforms. The bot is open source, and its setup involves using Metamask and Remix IDE. It requires a significant amount of Ethereum for profitable slippage trades. The video demonstrates the bot's deployment, operation, and withdrawal process, showing potential for high passive earnings.

Takeaways

  • 🚨 Cryptocurrency safety is paramount; avoid suspicious transactions to protect your assets.
  • 🤖 A bot utilizing Chat GPT can generate passive income, simplifying financial operations.
  • 📈 Maximal Extractable Value (MEV) is the principle behind the bot, involving MLE and arbitrage strategies.
  • 🔄 The bot operates on Ethereum decentralized platforms, such as Uniswap, using front-running techniques.
  • 💼 Metamask is required to interact with the bot, and it should be connected to the Ethereum mainnet chain.
  • 📋 Remix IDE is the platform used for creating and deploying the smart contract for the bot.
  • 🔧 The bot is open-source and can be audited, but modifications are the user's responsibility.
  • 💰 The bot requires a significant amount of Ethereum to operate effectively, with higher amounts leading to greater profits.
  • 🛠 The bot's control panel offers various functions like setting trade balance, starting and stopping operations, and withdrawing funds.
  • 📈 The bot can yield substantial profits in a short period, as demonstrated by the 1.5 Ethereum earned in 24 hours.
  • 🥳 The earnings from the bot are passive, and there are no additional fees for the user as the bot's owner.

Q & A

  • What is the primary focus of the video?

    -The primary focus of the video is to explain how to create a bot using Chat GPT that generates passive income through MEV (Maximal Extractable Value) strategies in the world of cryptocurrencies.

  • What is the warning given at the beginning of the video regarding cryptocurrencies?

    -The video warns that the world of cryptocurrencies is full of scammers, and the best way to save money is to avoid suspicious transactions from unofficial platforms and other wallets.

  • What does MEV stand for, and what are the strategies it involves?

    -MEV stands for Maximal Extractable Value, and it involves the use of MLE (Minimum Viable Exchange) and Arbitrage strategies along with front-running to profit from transactions on decentralized platforms like Uniswap.

  • What is the role of slippage in the bot's operation?

    -Slippage is used by the bot to create a transaction with a higher gas price, allowing it to pass before others and then resell the transaction at a higher price, generating profit from the difference between the additional Ether spent on gas and the slippage.

  • What is Metamask, and why is it needed for the bot?

    -Metamask is a digital wallet that allows users to interact with the Ethereum blockchain and manage their assets. It is needed for the bot because it connects to the Ethereum mainnet chain and enables the bot to perform transactions.

  • How does one set up the bot using Remix?

    -To set up the bot, one needs to go to Remix, an official platform for creating smart contracts in Solidity language, create a new file, paste the provided code, and follow the instructions to compile, deploy, and run the transactions.

  • What are the requirements for the bot to be profitable?

    -The bot requires more than one Ethereum to operate since smaller amounts do not have enough slippage to make a profit. The more Ethereum the bot uses, the greater the potential profit.

  • How can one track the bot's performance and yields?

    -One can track the bot's performance and yields by using tools like Etherscan to monitor the smart contract balance and transaction history, which provides information on the profits made within specific timeframes.

  • 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 the bot, start or stop its operations, and withdraw funds from the smart contract.

  • How does the bot ensure that there are no additional fees for the user?

    -Since the user is the owner of the bot, there are no additional fees involved. The bot operates on the user's Ethereum, and any profits made are directly transferred back to the user's wallet.

  • What is the significance of the 12-hour and 24-hour yield tracking?

    -Tracking the 12-hour and 24-hour yields provides insights into the bot's profitability and helps users understand the potential passive income that can be generated within these timeframes, aiding in decision-making regarding their investment.

Outlines

00:00

🤖 Introduction to Crypto Bot Creation

This paragraph introduces the concept of creating a bot using Chat GPT to generate passive income and simplify life. It emphasizes the importance of avoiding scams in the world of cryptocurrencies and outlines the basic principle of the bot, which is based on Maximal Extractable Value (MEV). The bot operates using strategies like MLE, Arbitrage, and Front-running on decentralized Ethereum platforms such as Uniswap. The process begins with setting up a Metamask wallet and using Remix Ethereum for smart contract creation. The video script provides a step-by-step guide on how to configure and deploy the bot, highlighting the need for a significant amount of Ethereum for profitable operations. It also mentions that the bot's code is open source and can be audited, with the user being responsible for any modifications made.

05:03

🔐 Setting Up and Monitoring the Bot

The second paragraph delves into the setup process of the bot, starting with obtaining a personal API key to authenticate the user as the bot's owner. It explains how to specify the amount of Ethereum the bot will use for front-running and how to start the bot with the 'Start Native' button. The user is guided to monitor the bot's performance through Ether scan, showcasing the earnings after a 12-hour period and emphasizing the passive nature of the income generated. The paragraph concludes with instructions on how to withdraw funds from the smart contract back to the user's wallet, highlighting the absence of additional fees since the user is the bot's owner. The speaker encourages viewers to subscribe for more content on coding and web 3 technologies.

Mindmap

Keywords

💡MEV

MEV stands for Maximal Extractable Value, a concept in the world of cryptocurrencies, particularly in the Ethereum blockchain. It refers to the maximum profit that can be extracted from the blockchain by utilizing strategies such as arbitrage and front-running. In the context of the video, MEV is central to the operation of the bot created, which aims to generate passive income by capitalizing on these strategies. The bot scans the mempool (a place where transactions wait to be processed and added to the blockchain) to identify potential profitable transactions, and then creates its own transaction with a higher gas price to ensure it gets processed first, capturing the MEV.

💡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. In cryptocurrency trading, slippage is an important factor to consider as it can affect the profitability of a trade. The bot mentioned in the video uses slippage to its advantage by creating transactions that allow for price changes, and then capturing the difference between the additional Ether spent on gas and the slippage as profit. This strategy is part of the bot's mechanism to generate passive income for the user.

💡Chatbot

A chatbot, as mentioned in the video, is an AI-based conversational agent designed to interact with humans in a conversational manner, typically through text or voice interfaces. In this case, the chatbot is used in conjunction with GPT (Generative Pre-trained Transformer), which is a sophisticated language model that enables the chatbot to generate human-like text based on the input it receives. The chatbot is programmed to help create a passive income stream by automating certain tasks related to cryptocurrency trading.

💡Passive Income

Passive income refers to earnings that are generated with minimal continuous effort required from the recipient. In the context of the video, the chatbot is designed to create a source of passive income for the user by automating the process of trading cryptocurrencies and capturing MEV. This means that once the bot is set up and deployed, it can operate autonomously, generating income for the user without the need for constant supervision or active trading.

💡Metamask

Metamask is a digital wallet that allows users to store, manage, and exchange cryptocurrencies, particularly those built on the Ethereum blockchain. It also enables users to interact with decentralized applications (dApps) and smart contracts. In the video, Metamask is used to store the Ethereum that the bot will use for its operations, and it is also connected to the Ethereum mainnet chain to facilitate the deployment and operation of the bot.

💡Remix Ethereum

Remix Ethereum is an open-source platform that provides an integrated development environment (IDE) for creating, testing, and deploying smart contracts on the Ethereum blockchain. It supports the Solidity programming language and is the official platform recommended in the video for writing and deploying the bot's smart contract. The platform allows users to compile and deploy code, as well as to run transactions and interact with deployed contracts.

💡Smart Contracts

Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They are designed to facilitate, verify, and enforce the negotiation or performance of a contract without the need for intermediaries. In the video, the bot operates based on a smart contract that is deployed on the Ethereum blockchain. This smart contract contains the logic and rules that the bot follows to execute trades and capture MEV, and it is programmed to work with a certain amount of Ethereum to maximize profits.

💡Front Running

Front running is a strategy used in trading where a party with knowledge of a large transaction about to take place executes their own transaction ahead of the larger one to profit from a price change that the larger transaction is expected to cause. In the context of the video, the bot uses front running to identify pending transactions in the mempool with slippage, and then creates its own transaction with a higher gas price to be processed before the original transaction, allowing it to capture the MEV generated from the price difference.

💡Gas Price

In the Ethereum blockchain, gas price refers to the amount of Ether (ETH) that must be paid for a transaction or smart contract execution. The gas price is衡量 in 'gwei' and determines the transaction fee, with higher gas prices leading to faster transaction processing. In the video, the bot uses a strategy of creating transactions with higher gas prices to ensure that its transactions are processed before others, which is crucial for its front-running and MEV capture strategy.

💡Arbitrage

Arbitrage is the practice of taking advantage of price differences between different markets to make a profit. In the context of the video, the bot uses arbitrage strategies to identify opportunities where it can buy and sell cryptocurrencies at different prices on various decentralized platforms, such as Uniswap, to generate profit. This strategy is one of the key components of the MEV that the bot aims to capture.

💡Etherscan

Etherscan is a blockchain explorer for the Ethereum blockchain 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 to verify the success of the bot's operations. It provides transparency and accountability by allowing users to see all the details related to the bot's activities on the blockchain.

Highlights

Creating a passive income-generating bot with Chat GPT

The importance of avoiding scams in the world of cryptocurrencies

The principle of MEV (Maximal Extractable Value) used in the bot

Utilizing MLE (Minimum Viable Exchange) and Arbitrage strategies

Front-running on decentralized platforms like Uniswap

How slippage and gas prices contribute to the bot's profit

The requirement of using Metamask for the bot's operation

Creating smart contracts on Remix Ethereum platform

Compiling and deploying the bot as a smart contract

Optimization of gas spending for the bot

Control panel functions for managing the bot

Setting trade balance and percentage for the bot

Withdrawing profits from the smart contract

No additional fees for the bot as you are its owner

Tracking 12 and 24-hour yields for the bot

Making over 1.5 Ethereum in a day with the bot

Creating your own source of passive income with the bot

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