Flash-Loan-Arbitrage-Bot_June2023

Description

The decentralized finance (DeFi) ecosystem offers numerous decentralized exchanges (DEXs) with varying liquidity and token prices. However, price discrepancies often exist between these platforms, creating arbitrage opportunities. Traditional arbitrage strategies require substantial capital, but they fall short in taking advantage of instant borrowing opportunities provided by flash loans.

Components

Flash Loan Arbitrage Bot

The main entry point of the system. It coordinates the interaction between the different components and manages the overall flow of the arbitrage process.

Arbitrage Finder

This component fetches market data from various decentralized exchanges (DEXs) and analyzes the prices to identify profitable arbitrage opportunities.

Arbitrage Executor

Once an arbitrage opportunity is detected, this component initiates a AAVE flash loan by interacting with a flash loan provider smart contract. It borrows the necessary funds for executing the trades by calling Trade Executor smart contract

Trade Executor

This component interacts with the identified DEXs to execute the sequence of trades required to take advantage of the price discrepancies. It handles the buying and selling of tokens to maximize the profit.

Whitelisted

Whitelisted implements a simple access control mechanism where certain addresses can be added to a whitelist, granting them permission to execute specific functions in derived contracts

Flow Chart Diagram