Use a slippage strategy to generate from 1.2ETHs per week

Robert DevX Web3
9 Apr 202406:46

TLDRThe video introduces a bot created with Chat GPT to generate passive income through cryptocurrency trading. It utilizes Mev strategies on Ethereum-based decentralized platforms, requiring over 0.5 Ethereum for operation. The bot is open-source and its deployment and management are detailed, including setting trade balance, starting and stopping operations, and withdrawing funds. The creator demonstrates the bot's profitability by tracking 12 and 24-hour yields, emphasizing its potential as a source of passive income.

Takeaways

  • 🚀 The video introduces a bot created with Chat GPT for generating passive income through cryptocurrency trading.
  • 🛡️ Importance of avoiding scams and suspicious transactions in the world of cryptocurrencies is emphasized for asset safety.
  • 📈 The bot operates on the principle of MEV (Maximal Extractable Value) using strategies like mem pool analysis, arbitrage, and front running.
  • 💼 A transaction with slippage is monitored by the bot, which then creates a similar transaction with a higher gas price to prioritize its processing.
  • 💰 The profit comes from the difference between the additional Ether spent on gas and the slippage in the transaction price.
  • 📱 Metamask is required for the bot, and it should be connected to the Ethereum mainnet with more than 0.5 Ethereum for effective operation.
  • 🔧 Remix Ethereum is used for creating and deploying the smart contract for the bot, with optimization enabled to reduce gas spending.
  • 🔄 The bot's control panel allows for setting trade balance, starting and stopping the bot, and withdrawing funds.
  • 🔑 The bot is open source for audits and modifications, but users are responsible for its functioning if modified.
  • 📊 The bot's performance can be tracked through Etherscan, which shows the balance used for front running and transaction history.
  • 🏦 No additional fees are incurred as the user is the sole owner of the bot, and all earnings are passive income.

Q & A

  • What is the main purpose of the bot created with Chat GPT as mentioned in the script?

    -The main purpose of the bot is to create passive income by utilizing the principle of Mev (maximal extractable value) through strategies like arbitrage, front running, and taking advantage of slippage in transactions on decentralized platforms on the Ethereum network.

  • What is the significance of avoiding suspicious transactions in the world of cryptocurrencies?

    -Avoiding suspicious transactions is crucial for safeguarding one's assets as the cryptocurrency space is filled with scammers. It is the best way to ensure the security of one's funds and avoid potential losses from unofficial platforms and fraudulent activities.

  • What does the term 'mempool' refer to in the context of the script?

    -In the context of the script, 'mempool' refers to the memory pool of an Ethereum node, where transactions wait to be processed and included in a block. It is the place where unconfirmed transactions are stored before they get added to the blockchain.

  • How does the bot benefit from slippage?

    -The bot benefits from slippage by creating a transaction with the same amount but a higher gas price than the original transaction it identifies in the mempool. This allows the bot's transaction to be processed first, and then it resells the transaction at a higher price, profiting from the difference between the additional Ether spent on gas and the slippage.

  • What is the minimum requirement for Ethereum that the bot needs to operate effectively?

    -The bot requires more than 0.5 Ethereum to operate effectively because smaller amounts do not provide enough slippage to make a profit. The more Ethereum the bot uses, the greater the potential profit it can generate.

  • How can one deploy the bot's smart contract using Remix and Metamask?

    -To deploy the bot's smart contract, one needs to use Remix, an official platform for creating smart contracts in Solidity language, and Metamask, a browser extension that allows users to interact with Ethereum-based smart contracts. The process involves writing the bot's code in Remix, compiling it, and then deploying the contract to the Ethereum mainnet using Metamask, following the instructions provided in the script.

  • What is the role of the 'aggressive' gas option when deploying the contract and withdrawing funds?

    -The 'aggressive' gas option is used to prioritize the transaction on the Ethereum network. When deploying the contract, using this option makes the transaction process faster and more likely to be included in the next block. Similarly, when withdrawing funds, setting the gas to 'aggressive 2' ensures that the withdrawal transaction is processed quickly.

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

    -The performance and earnings of the bot can be tracked through Etherscan, a blockchain explorer. By entering the transaction ID or the smart contract address, one can view the bot's balance, transaction history, and other relevant information. This allows the bot's owner to monitor the passive income generated and make decisions accordingly.

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

    -The personal API key is used to identify the bot's owner and grant them access to control the bot's functions. It is crucial to keep this key confidential, as it provides full control over the bot's operations, including starting, stopping, and withdrawing funds.

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

    -Since the bot is completely open source and the user is its sole owner, there are no additional fees involved in its operation. All the profits generated from the bot's activities go directly to the user, who is responsible for any transaction fees associated with interacting with the Ethereum network.

  • What is the potential profit that can be made using the bot, as demonstrated in the script?

    -In the script, the bot creator demonstrates that it is possible to make more than one Ethereum in a single day by using the bot. This represents a significant passive income opportunity, especially when considering that the bot operates automatically and requires no manual intervention once set up.

Outlines

00:00

🤖 Introduction to Cryptocurrency Bot Creation

The speaker introduces the audience to the concept of creating a bot using Chat GPT for generating passive income. They emphasize the importance of avoiding scams in the world of cryptocurrencies and outline the basic principles of asset safety. The speaker then explains the concept of Mev (maximal extractable value) and how it operates within the Ethereum network, utilizing strategies like front running and arbitrage. The video provides a step-by-step guide on setting up the bot, including the requirement of having more than 0.5 Ethereum and the open-source nature of the bot for modifications and audits.

05:00

📈 Tracking Yields and Withdrawing Earnings

In this section, the speaker demonstrates how to track the bot's performance over a 12 and 24-hour period, showcasing the earnings generated. They explain the process of withdrawing the earned Ethereum back to the wallet, emphasizing the bot's lack of additional fees since the user is the sole owner. The speaker also provides instructions on how to check the bot's balance on The Ether scan and reassures viewers that a zero balance is expected after withdrawal. The video concludes with a call to action for viewers to subscribe for more content on coding and web3 technologies.

Mindmap

Keywords

💡Slippage strategy

A slippage strategy in the context of the video refers to a method used in cryptocurrency trading to generate profits by capitalizing on price discrepancies that occur due to transaction delays in the blockchain network. The strategy involves setting a transaction with a slippage tolerance, which allows the bot to execute trades at a slightly different price than the one initially seen, ensuring the trade goes through even if the market moves. In the video, the speaker uses a bot that employs this strategy to generate passive income by front running and reselling transactions at a higher price, profiting from the slippage difference.

💡Chat GPT

Chat GPT is an AI-based chatbot that the speaker mentions as a tool used to create a bot for generating passive income. In the context of the video, it seems that the speaker has utilized the capabilities of Chat GPT to develop a cryptocurrency trading bot. This bot operates on principles of blockchain transactions and is designed to interact with decentralized platforms on the Ethereum network, such as Uniswap, to execute profitable trades.

💡Cryptocurrencies

Cryptocurrencies are digital or virtual currencies that use cryptography for security and operate on decentralized networks, such as blockchain technology. In the video, the speaker discusses the world of cryptocurrencies and the potential risks associated with scams and unofficial platforms. The main focus is on how to safely engage in cryptocurrency trading and how the proposed bot strategy can help users generate passive income within this realm.

💡MEV (Maximal Extractable Value)

MEV, or Maximal Extractable Value, is a term used in the blockchain and cryptocurrency space to describe the potential profit that can be extracted from the Ethereum network by exploiting the mechanics of transactions and block confirmations. In the video, the speaker's bot operates on the principle of MEV, using strategies like front running to identify and capitalize on profitable opportunities within the Ethereum network's mempool, where transactions wait to be processed and confirmed.

💡Mempool

The mempool, short for memory pool, is a collection of all unconfirmed transactions that are waiting to be processed and added to the blockchain. In the context of the video, the speaker's bot scans the mempool for transactions with slippage, creating a new transaction with a higher gas price to front run the original transaction, thus aiming to profit from the price difference due to slippage.

💡Uniswap

Uniswap is a popular decentralized exchange (DEX) built on the Ethereum blockchain that allows users to swap various cryptocurrencies without the need for a centralized authority. In the video, Uniswap is mentioned as one of the decentralized platforms on Ethereum that the speaker's bot interacts with to execute trades and generate profit using the slippage strategy.

💡Front running

Front running is a strategy where a bot or trader anticipates and takes advantage of large market orders by executing similar transactions ahead of them, thereby profiting from the price movement caused by the original order. In the video, the speaker's bot uses front running to identify and quickly act on transactions with slippage, allowing it to execute trades at more favorable prices and generate profit.

💡Metamask

Metamask is a browser extension and mobile wallet that allows users to interact with the Ethereum blockchain and manage their Ethereum-based assets. In the video, the speaker instructs viewers to have Metamask installed and connected to the Ethereum mainnet to deploy and interact with the trading bot, which is an essential step in setting up the slippage strategy for generating passive income.

💡Smart contracts

Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They are a foundational component of blockchain platforms like Ethereum, allowing for automated and trustless transactions. In the video, the speaker mentions creating a smart contract on Remix, an official platform for developing smart contracts in Solidity language, which is crucial for deploying the bot that will execute the slippage strategy.

💡Gas price

Gas price in the Ethereum network refers to the amount of Ether (ETH) that must be paid for a transaction to be processed by a miner and added to the blockchain. In the video, the speaker discusses the importance of setting a higher gas price to ensure that the bot's transactions are processed quickly and can successfully front run other transactions in the mempool, which is a key aspect of the slippage strategy.

💡Passive income

Passive income refers to earnings that are generated with minimal continuous effort once an initial setup is complete. In the context of the video, the speaker describes how the bot utilizing the slippage strategy on the Ethereum network can create a source of passive income for users by automatically executing profitable trades without the need for constant monitoring or intervention.

Highlights

Creating a bot with chat GPT for passive income generation

The importance of avoiding scams in the world of cryptocurrencies

The principle of Mev (maximal extractable value) and its role in the bot's operation

Utilizing the mempool and strategies like arbitrage, front running for profit

The requirement of having more than 0.5 Ethereum for the bot to be profitable

The bot is open source for audits and free modifications

Using Metamask and Remix for bot deployment

Compiling and deploying the bot on the Ethereum mainnet

Configuring the bot with a control panel for trade balance, start, stop, and withdraw functions

The bot's ability to front run transactions with higher gas prices

Tracking 12 and 24-hour yields for passive income

Making a profit of more than 0.5 Ethereum in less than 12 hours

Withdrawing profits back to the wallet without additional fees

The unique opportunity to create a personal source of passive income

The potential for significant earnings through Mev strategies

The importance of mastering asset safety rules

The detailed step-by-step guide on setting up and using the bot

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