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I spent quite a lot of time developing Uniswap/Sushiswap/other dex arbitrage (back/front/sandwich) tools and bots over the last 6 months. When you say you simp
by phyalow 6y ago
I spent quite a lot of time developing Uniswap/Sushiswap/other dex arbitrage (back/front/sandwich) tools and bots over the last 6 months.
When you say you simply need to run a full node, thats incorrect. It is a prerequisite yes, but much less than half the battle. You also need now to ensure correct order placement (on any opportunity there are upwards of 5-15 competing bots), a friendly relay network/mining pools, efficiently node peering (e.g. 2-400 peers per node, managed on a custom routing table), a network of nodes to broadcast/listen for mem pool messages across the entire network instantaneously without waiting for P2P propagation (1-2 hops may introduce enough latency to lose out on the arb) (& some nodes are malicious - who fail to propagate arb'ble tx's), patched/custom GETH instances running on nodes (I am not at liberty to reveal what optimizations make one competitive). And then above all of that you need to be able to absorb, identify profitable transactions and then compute/simulate optimal transaction parameters in a very constrained amount of time.
So its not at all simple, in fact I have wound down most of my operations as the costs vs. rewards are extremely marginal now vs. what they were mid last year.