Aave v3 Flash Loan Arbitrage Bot for the Optimisim Network

This project implements a flash loan arbitrage bot that monitors and executes trading opportunities between Uniswap and SushiSwap on the Base network.

Overview

The system consists of two main components:

1. A smart contract (FlashLoanArbitrage.sol) that executes flash loans and arbitrage trades
2. A monitoring script (monitor.js) that watches for profitable opportunities

Smart Contract Features

• Flash loan integration with Aave V3
• Arbitrage execution between Uniswap and SushiSwap
• Safety features:
  • Price impact checks (max 3%)
  • Minimum/maximum borrow limits
  • Gas price limits optimized for Base
  • Reentrancy protection
  • Owner-only execution
  • Profit verification

Monitoring System Features

• Real-time price monitoring across DEXes
• Detailed logging system with:
  • Price differences
  • Gas costs
  • Execution results
  • Profit tracking
• Configurable parameters:
  • Profit thresholds
  • Token pairs
  • Retry delays
• Error handling and recovery

Installation

npm install

Configuration

1. Copy .env.example to .env and fill in your values:

cp .env.example .env

2. Update the following in deploy.js:

• AAVE_LENDING_POOL_ADDRESS_PROVIDER
• Router addresses (if deploying to mainnet)

3. Update token pairs in monitor.js if needed

Deployment

For Base Testnet:

npx hardhat run scripts/deploy.js --network base-testnet

For Base Mainnet:

npx hardhat run scripts/deploy.js --network base

Monitoring

The monitoring system (monitor.js) includes comprehensive logging:

• All activities are logged to daily files (arbitrage_log_YYYY-MM-DD.txt)
• Logs include:
  • Price checks
  • Profitable opportunities
  • Trade execution results
  • Gas prices
  • Errors and issues

To start monitoring:

node monitor.js

Logging System

The monitoring script implements detailed logging through the logToFile method:

• Timestamp for every log entry
• Price comparisons between DEXes
• Gas price monitoring
• Trade execution details
• Profit/loss tracking
• Error logging

Logs are stored in the logs directory with daily rotation.

Security Considerations

• Never commit your private keys or .env file
• Test thoroughly on testnet first
• Monitor gas prices and adjust limits accordingly
• Start with small trade amounts
• Review price impact before execution

Networks

The system is configured for:

• Base Mainnet (https://mainnet.base.org)
• Base Testnet (https://goerli.base.org)

To switch networks, update the provider URL in monitor.js and deployment configurations.

License

MIT

Disclaimer

This is experimental software. Use at your own risk. Always test with small amounts first.