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https://github.com/haydenshively/cafe-chi

Slow paced ETH-CHI arbitrage on Uniswap
https://github.com/haydenshively/cafe-chi

1inch arbitrage bot gas-token uniswap web3js

Last synced: 23 days ago
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Slow paced ETH-CHI arbitrage on Uniswap

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README 

        
# Cafe-Chi



![Node.js CI](https://github.com/haydenshively/Cafe-Chi/workflows/Node.js%20CI/badge.svg)



Cafe-Chi is a fully operational arbitrage bot for the [CHI-ETH pair](https://info.uniswap.org/pair/0xa6f3ef841d371a82ca757fad08efc0dee2f1f5e2)

on Uniswap. Most arbitrage relies on complex routing algorithms to find the most

profitable path through a series of exchanges. In contrast, Cafe-Chi takes advantage

of the fact that ETH can be used to mint CHI -- the two assets are uniquely coupled.



The price of CHI on Uniswap can be used to compute a sort of market-rate gas price

for transactions. Cafe-Chi sends transactions with gas prices slightly lower than

that market rate. If they get confirmed, CHI can be minted for less ETH than it

would take to buy it. The difference is taken as profit. Since profits are always

in ETH and always get send back to `tx.origin`, Cafe-Chi is self-sustaining.



## Project Layout



All Solidity code is under the `contracts` directory. In theory one could mint CHI,

then trade it on Uniswap, but here we use a flash swap for fun. Before going through

with the mint, the code checks that the transaction will be profitable according

to `tx.gasprice` (technically some gas is spent before this check, but it's

negligble compared to what _would_ get spent during minting). If you're confused

about the math here, check out the excellent graphic at the top of [this page](https://uniswap.org/docs/v2/core-concepts/swaps/).



Solidity code has already been deployed. Addresses can be found in the corresponding

[Javascript wrapper](./src/network/webthree/haydenshively/cafechi.js). I haven't

verified the code on Etherscan, but feel free to check it yourself or deploy your own

contracts.



Javascript source code and tests are located in the `src` and `tests` directories

respectively.



## Getting started



Install dependencies:



```

yarn install

```



After installation, you'll probably want to run some tests just to make sure your

environment is set up correctly. Make sure your `.env` contains a `PROVIDER_INFURA_ID`

and a `PROVIDER_ALCHEMY_KEY`. If you'd rather use your local node via IPC or some other

combination of providers, just multiple the array that's used to instantiate

`MultiSendProvider` in [tests/setup.js](./tests/setup.js). Then run:



```

yarn test

```



To actually run Cafe-Chi, you'll want to customize [config.json](./config.json). Each

entry in the `txManagers` object should have its own `envKeyAddress` and `envKeySecret`.

These should reference the name of the `.env` variable that contains your address and

secret. For example, if your address is stored in the MY_ADDRESS variable, you should

set `envKeyAddress: "MY_ADDRESS"`. Note that the "secret" is your private key *without*

the '0x' at the beginning, while your address should include the '0x'.



Other parameters:



- `interval`: How often (in seconds) to check market conditions and send new

transactions

- `numPending`: How many transactions to keep pending at any given time. Don't set this

too high, as you will eventually exhaust the arbitrage opportunity and all remaining

transactions will fail.

- `ratio`: The percent of market-rate gas price that your transactions will be sent at.

For example, if the CHI-ETH pair thinks its CHI was minted at 30 gwei, and you set this

to .99, your transactions will be sent at 29.7 gwei. Higher ratios are more likely to

get confirmed, but lower ones result in more profit.

- `providers`: Specifies what services will be used to send transactions. Infura will

work just fine. See [tests/setup.js](./tests/setup.js) for how to specify an Infura or

Alchemy provider.



Also note that each txManager will run in its own Node.js process.



Finally, it can be useful to get notifications when transactions are sent. If you want

Slack messages, add a SLACK_WEBHOOK environment variable. Otherwise you can remove

Slack from the winston transports array in [src/setup.js](./src/setup.js).



Ready to start? Run:



```

yarn cafe-chi

```



I recommend running this inside of a tmux session (`tmux new -s cafechi`) so that it

will run even if your SSH connection / terminal window gets closed.



## What next?



Experiment with the various parameters to see how consistently you can get transactions

to go through, or modify the Solidity code to mint different amounts of CHI at once

(I have one that mints 140 and another that mints only 10). As long as your account

starts out with ~0.2 ETH, you should be able to sit back and watch your balance grow

(albeit rather slowly). Good luck!



> P.S. If you're a developer, feel free to write some tests for CafeChi.sol and/or

submit a PR to use truffle rather than OpenZeppelin CLI.



## Disclaimer



_USE THIS CODE AT YOUR OWN RISK!_ There's no warranty of any kind, and I can't promise

that you'll make money. Do your own research.