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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
  1. Update the following in deploy.js:
  • AAVE_LENDING_POOL_ADDRESS_PROVIDER
  • Router addresses (if deploying to mainnet)
  1. 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.