Arbitrage on Ethereum, leveraging dYdX Flash Loans and KyberSwap's Aggregator API

Arbitrage strategy

use KyberSwap Router to find the best route to take when swapping assets
- find best route and swap token A for token B
- find best route and swap token B for token A
- if the token A final balance is greater than the token A initial balance, then the arbitrage is profitable
for a big leverage, make use of flash loans, to move large amounts of assets from one exchange to another
all operations on the blockchain are performed inside a single transaction
in the event that arbitrage is not profitable, the only losses incurred are gas fees.

Node.js program that listens to new blocks by using a websocket connection
- use web3.eth.subscribe
initialize a web3.js instance over websocket connection
hide the sensible data in a .env file
when a new block is mined, the job uses KyberSwap Aggregator API to evaluate the arbitrage opportunity
- use KyberSwap Aggregator API to get the best route to swap X WETH for Y USDC
- use KyberSwap Aggregator API to get the best route to swap Y USDC for Z WETH
- if Z - X - gasFees > 0, then the arbitrage is profitable
if the arbitrage is profitable, the job sends a transaction to the Arbitrage Smart Contract
The program can also be used to withdraw profits accumulated by the Arbitrage Smart Contract

use DyDx to create a flash loan for X WETH
call AggregationRouter with encoded swap data to swap X WETH for Y USDC
call AggregationRouter with encoded swap data to swap Y USDC for Z WETH
if Z > X, then the arbitrage is profitable and the transaction should succeed, else the transaction will revert