🤖 Arbitrum Arbitrage Bot

This project contains a real-time arbitrage bot designed for a specific trading pair: MAGIC/USDC on the Arbitrum network.
It identifies profitable price differences between Uniswap V3 and SushiSwap and executes atomic swaps via a custom smart contract.

While the current version is tailored for the MAGIC/USDC pair, the same logic can be reused to support additional trading pairs by:

• Adjusting token addresses and decimals
• Deploying new smart contracts per pair (if preferred)
• Reusing or duplicating the existing bot logic with minor modifications

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🔧 Features

• ✅ Built for Arbitrum One
• 🔄 Scans 4 arbitrage routes:
  • MAGIC → USDC (Uniswap) → MAGIC (SushiSwap)
  • MAGIC → USDC (SushiSwap) → MAGIC (Uniswap)
  • USDC → MAGIC (Uniswap) → USDC (SushiSwap)
  • USDC → MAGIC (SushiSwap) → USDC (Uniswap)
• 🤝 Uses deployed smart contract for atomic arbitrage
• 💰 Dynamic gas + slippage-aware execution
• 🔗 Web3 connection via Alchemy RPC + MetaMask wallet
• 🧪 Simulates all routes and logs only profitable trades

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📁 Project Structure

.
├── bot/
│   ├── arbitrage_bot.py         # Main logic (4-route arbitrage loop)
│   ├── get_decimals.py          # Token decimal checker (MAGIC, USDC)
│   └── withdraw.py              # Rescue logic for incorrect token addresses
├── contracts/
│   └── ArbitrageExecutor.sol    # Smart contract for executing swaps
├── .env.example                 # Template for secrets (.env is ignored)
├── .gitignore
├── LICENSE                      # MIT license
├── requirements.txt             # Python dependencies
└── README.md

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⚙️ Requirements

• Python 3.8+
• An Alchemy WebSocket endpoint for Arbitrum
• MetaMask wallet (private key & address)

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🚀 Setup

1. Install dependencies

   pip install -r requirements.txt

2. Create your .env file

   cp .env.example .env

3. Fill in your .env with values from MetaMask + Alchemy

   • PRIVATE_KEY and WALLET_ADDRESS from MetaMask
   • ARBITRUM_RPC from Alchemy dashboard
   • ARBITRAGE_CONTRACT_ADDRESS after deploying contract (see below)

4. Run the bot

   python bot/arbitrage_bot.py

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🛠 Smart Contract Deployment

This repo uses a custom ArbitrageExecutor.sol smart contract.

🧠 The contract is designed for deployment using MetaMask + Remix.

Deployment steps:

1. Open Remix
2. Paste in the code from contracts/ArbitrageExecutor.sol
3. Compile the contract
4. Use the Deploy & Run tab:
   • Set environment to Injected Web3
   • Connect to MetaMask on Arbitrum
   • Enter constructor params (MAGIC, USDC, routers, min profit)
   • Click Deploy

Copy the contract address into your .env file:

ARBITRAGE_CONTRACT_ADDRESS=0xYourContractAddress

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🧯 Recovering Funds (optional)

If you accidentally send USDC to the wrong token address in the contract:

• Use withdraw.py to detect token balances by contract address
• Ensure your smart contract includes a rescueTokens() function (already included)

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🛡 Security Notes

• Never commit your .env file
• Use a MetaMask wallet with limited funds for testing
• Confirm deployed contract addresses before running the bot

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💡 Contribute / Reality Check

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💡 Contribute / Reality Check

“Arbitrage sounds easy — until you factor in gas fees, slippage, and MEV bots.”

This bot was originally built to test real-world arbitrage using the MAGIC/USDC pair on Arbitrum.
Among all tested combinations, MAGIC/USDC was the most promising in terms of volatility and route spreads — but even then, profitable opportunities were extremely rare once gas and slippage were factored in.

The following pairs were also tested with the same logic:

• MAGIC/ETH – high slippage, low liquidity
• SPELL/WETH – very low volume
• USDC/WBTC – stable, but rare deviation
• USDC/WETH – frequent trades, but MEV bots dominate
• USDCE/WETH – similar to USDC, used for edge testing
• USDT/WETH – good volume, but tightly correlated pricing

If you're a Web3 dev, quant, or someone who’s battled this problem before:

• 💬 Reach out or fork the project
• 🧠 Share strategies (MEV, Flashbots, multi-pair logic)
• 🔥 Help make this bot smarter, faster, and maybe... actually profitable

Let’s go broke trying together — or rich, who knows. 🚀

📚 Resources

Useful links to help you run, deploy, or inspect this bot on the Arbitrum network:

Infrastructure

• 🔌 Alchemy (Arbitrum RPC provider): https://www.alchemy.com/
• 🦊 MetaMask (Wallet): https://metamask.io/
• 🔍 Arbiscan (Arbitrum block explorer): https://arbiscan.io/
• 🧱 Remix (Smart contract IDE): https://remix.ethereum.org/

Contracts & Token Tools

• 📜 Uniswap V3 Docs: https://docs.uniswap.org/
• 🍣 SushiSwap Docs: https://docs.sushi.com/
• 🧮 Web3.py Docs: https://web3py.readthedocs.io/

Deployment Networks

• 🌉 Arbitrum One Bridge: https://bridge.arbitrum.io/
• 📈 Arbitrum Status Monitor: https://status.arbitrum.io/

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📜 License

This project is licensed under the MIT License — see LICENSE.

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📬 Contact

This project is maintained anonymously.
Feel free to fork and adapt — contributions welcome!