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🧠 Advanced: Flash Loan Arbitrage & MEV

Learn about atomic arbitrage and front-running bots

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⚡ Advanced Arbitrage Strategies

Advanced arbitrage strategies leverage smart contracts, flash loans, and MEV (Maximal Extractable Value) to execute complex, high-profit trades that were impossible in traditional finance.

🎮 Interactive: Flash Loan Arbitrage Simulator

Flash loans let you borrow massive amounts without collateral, but you must repay + fee in the same transaction:

$100K$10M
0.05%1.0%
0.05%0.3%
$10$500

Transaction Flow (All in 1 Block)

1️⃣
Borrow from Flash Loan Protocol
$1,000,000 USDT
2️⃣
Execute Arbitrage Trade
Buy low on DEX A, sell high on DEX B
Revenue: $3,000
3️⃣
Repay Flash Loan + Fee
Principal: $1,000,000
Fee (0.09%): $900
⛽
Gas Fees
$50
Net Profit:$2,050.00
Return on Gas Investment:4100x
Transaction Status
✅ Transaction Would Succeed
⚠️ Critical Requirement
If you cannot repay the flash loan + fee in the same transaction, the entire transaction reverts. You would lose only gas fees (~$50), not the loan amount.

Flash Loan Providers

🦸

Aave

Fee:0.09%
Liquidity:$15B+
📊

dYdX

Fee:0%
Liquidity:$500M+
🦄

Uniswap V3

Fee:Variable
Liquidity:$4B+

🎮 Interactive: MEV Strategy Explorer

MEV (Maximal Extractable Value) involves reordering, inserting, or censoring transactions to extract profit:

🥪

Sandwich Attack

Surround a victim's trade with your own buy and sell orders to profit from their price impact

1
Victim
Submits: Buy 100 ETH at market price
0xabc...123
2
MEV Bot
Front-runs: Buy 500 ETH (raises price)
0xdef...456
3
Victim
Executes: Buys 100 ETH at higher price
0xabc...123
4
MEV Bot
Back-runs: Sells 500 ETH (profits from raised price)
0xghi...789
User Impact
Victim pays $2,000 more than expected
Bot Profit
$1,800 after gas fees
Ethical Rating
Highly controversial - extracts value from regular users

MEV in Numbers

💰

$700M+

Extracted via MEV on Ethereum in 2023 alone. This includes sandwich attacks, arbitrage, and liquidations.

⚡

12-15%

Percentage of Ethereum blocks that contain MEV extraction. Professional bots monitor every transaction.

🤖

Flashbots

Private transaction relay that lets bots bid for transaction ordering, making MEV extraction more efficient and less visible.

⏱️

<1ms

Time it takes for MEV bots to detect, calculate, and submit competing transactions. Human traders cannot compete.

💡

Advanced Strategy Tips

  • •Use Flashbots: Submit transactions privately to avoid being front-run yourself
  • •Smart contract optimization: Every gas unit counts - optimize code to maximize profit margin
  • •Run your own node: Faster mempool access gives millisecond advantages
  • •Multi-protocol support: Best opportunities span multiple DEXs - support 10+ protocols
  • •Consider ethics: Sandwich attacks harm users - focus on back-running and liquidations instead