Trading bots

Overview

The TRP Arbitrage Bot is an automated EVM trading bot that monitors and executes profitable arbitrage opportunities across 6 different strategies using flashloans, wrapper contracts, and custom Balancer pool swaps. The bot operates continuously, scanning for price discrepancies and executing trades when profitable conditions are detected.

Features

  • 6 Arbitrage Strategies: Flashloans, simple wrapper swaps, Aave-based strategies

  • Automated Execution: Continuous monitoring with configurable intervals

  • Risk Management: Built-in slippage protection, gas cost analysis, and retry logic

  • Flexible Configuration: Easily configure routes, contracts, and trading parameters

  • Production Ready: Upgradeable contracts, comprehensive testing, and monitoring

Prerequisites

Before using the TRP Arbitrage Bot, ensure you have:

  • Node.js (v16 or higher)

  • Yarn or npm

  • Ethereum wallet with private key

  • RPC endpoint (Alchemy, Infura, or custom)

  • Deployed contracts (Strategy)

  • API endpoints for price data and flashloan parameters

Installation

1. Clone and Install

git clone <repository-url>
cd arbitrage-bot
yarn install
# or npm install

2. Compile Contracts

yarn compile
# or npm run compile

3. Run Tests (Optional)

yarn test
# or npm test

Configuration

Environment Variables

Create a .env file in the root directory with the following configuration:

# Blockchain Connection
RPC_URL=https://eth-mainnet.alchemyapi.io/v2/your-api-key
SEPOLIA_RPC_URL=https://eth-sepolia.g.alchemy.com/v2/your-api-key  # For testnet
PRIVATE_KEY=0xYourPrivateKeyHere

# Contract Addresses (use actual deployed addresses)
UNDERLYING_ADDRESS=0x...     # e.g., USDC, DAI, WBTC
SMARTTOKENX_ADDRESS=0x...    # riskON token contract
SMARTTOKENY_ADDRESS=0x...    # riskOFF token contract
WRAPPED_X_ADDRESS=0x...      # Wrapped riskON contract
WRAPPED_Y_ADDRESS=0x...      # Wrapped riskOFF contract
STRATEGY_ADDRESS=0x...       # Main strategy contract
BPOOL_ADDRESS=0x...          # Balancer pool for X/Y/Underlying

# API Configuration
API_URL=https://api-demo.riskprotocol.io
AAVE_POOL_ADDRESS=0x87870Bca3F3fD6335C3F4ce8392D69350B4fA4E2  # Optional: Mainnet Aave V3

# Bot Configuration
ROUTES=1,2,3,4,5,6           # Comma-separated routes to monitor
CHECK_INTERVAL_MS=15000      # Check every 15 seconds (default)

Contract Deployment

If you need to deploy contracts:

# Deploy to testnet (Sepolia)
yarn hardhat run scripts/deploy.ts --network sepolia

# Deploy to mainnet
yarn hardhat run scripts/deploy.ts --network mainnet

Usage

Starting the Bot

# Start the arbitrage bot
yarn start
# or npm start

The bot will:

  1. Load configuration from environment variables

  2. Connect to the blockchain using your RPC endpoint

  3. Initialize contract connections

  4. Begin monitoring all configured routes (default: 1,2,3,4,5,6)

  5. Execute profitable arbitrage opportunities automatically

  6. Check for opportunities every 15 seconds (configurable)

Bot Output Example

🚀 TRP Arbitrage Bot Starting...
✅ Connected to Ethereum Mainnet
✅ Loaded 6 arbitrage routes: 1,2,3,4,5,6
✅ Strategy contract: 0xABC123...
✅ Monitoring every 15 seconds

[2024-01-15 10:30:45] 🔍 Scanning routes...
[2024-01-15 10:30:46] Route 1: Complex Route: No arbitrage opportunity
[2024-01-15 10:30:47] Route 2: Simple Route: Profitable arbitrage route
[2024-01-15 10:30:48] 💰 Executed Route 2: Profit = 0.025 ETH ($45.50)
[2024-01-15 10:30:49] Route 3: Third Route: No arbitrage opportunity
[2024-01-15 10:30:50] Route 4: Forth Route: No arbitrage opportunity
[2024-01-15 10:30:51] Route 5: Route 5: No arbitrage opportunity  
[2024-01-15 10:30:52] Route 6: Route 6: Huge arbitrage opportunity found! Profit ratio: 15%
[2024-01-15 10:30:53] 💰 Executed Route 6: Profit = 0.150 ETH ($273.00)
[2024-01-15 10:30:54] ✅ Cycle complete. Next check in 15 seconds...

Arbitrage Routes Explained

Route 1: Complex Nested Flashloans

  • Strategy: Borrow both rON and rOFF tokens, redeem for underlying, swap for repayment

  • Use Case: When both wrappers have unwanted token discounts

  • Capital: No upfront capital needed (flashloans)

Route 2: Simple Wrapper Arbitrage

  • Strategy: Borrow unwanted token from wrapper, swap for wanted token

  • Use Case: When one wrapper has significant unwanted token discount

  • Capital: No upfront capital needed (flashloans)

Route 3: Third Route Nested Strategy

  • Strategy: Borrow unwanted token, get wanted token loan, redeem optimally

  • Use Case: Complex scenarios with both wanted and unwanted token opportunities

  • Capital: No upfront capital needed (flashloans)

Route 4: Fourth Route Premium Strategy

  • Strategy: Flashloan both wanted tokens from wrappers, redeem and trade

  • Use Case: When both wrappers offer wanted tokens with favorable premiums

  • Capital: No upfront capital needed (flashloans)

Route 5: Aave Deposit-and-Swap

  • Strategy: Borrow underlying from Aave, deposit to get X+Y tokens, swap to underlying

  • Use Case: When TRP deposit rate (1:1) is better than Balancer market rates

  • Capital: No upfront capital needed (Aave flashloans)

Route 6: Aave Buy-and-Redeem

  • Strategy: Borrow underlying from Aave, buy X+Y tokens from Balancer, redeem

  • Use Case: When Balancer market rates are cheaper than TRP redemption rate (1:1)

  • Capital: No upfront capital needed (Aave flashloans)

Advanced Configuration

Route Selection

You can configure which routes to monitor:

# Monitor only Aave-based strategies
ROUTES=5,6

# Monitor only wrapper-based strategies  
ROUTES=1,2,3,4

# Monitor specific routes
ROUTES=2,5

Advanced Configuration

The bot includes built-in gas management and profitability logic. Key configuration options:

# Timing Configuration
CHECK_INTERVAL_MS=15000      # How often to check for opportunities (milliseconds)

# Network Configuration  
RPC_URL=your-mainnet-rpc     # Use fast, reliable RPC for best performance
SEPOLIA_RPC_URL=your-testnet # For testing and development

# Route Selection
ROUTES=1,2,3,4,5,6          # Enable all routes
ROUTES=5,6                  # Enable only Aave-based routes
ROUTES=2,3                  # Enable only specific wrapper routes

Monitoring and Alerts

The bot currently logs all activity to the console. You can capture this output for monitoring:

# Run with output logging
yarn start > arbitrage.log 2>&1

# Run in background with nohup
nohup yarn start > arbitrage.log 2>&1 &

# View live logs
tail -f arbitrage.log

Safety and Risk Management

Built-in Safety Features

  1. Gas Price Protection: Bot refuses to execute if gas prices exceed configured maximum

  2. Slippage Protection: All trades include configurable slippage tolerance

  3. Retry Logic: Failed transactions retry with reduced amounts

  4. Profit Validation: All trades validated for profitability before execution

  5. Contract Upgrades: Strategy contract is upgradeable for bug fixes and improvements

Recommended Practices

  1. Start Small: Begin with conservative settings and smaller profit thresholds

  2. Monitor Closely: Watch the first few hours of operation carefully

  3. Test Environment: Always test on testnets before mainnet deployment

  4. Backup Keys: Ensure private keys are securely backed up

  5. Regular Updates: Keep the bot updated with latest improvements

Risk Considerations

  • Smart Contract Risk: Strategy contract could have bugs (mitigated by comprehensive testing)

  • Market Risk: Rapid price movements could cause unexpected losses

  • Gas Risk: High gas prices could eat into profits

  • Competition: Other arbitrage bots may front-run opportunities

  • Slippage Risk: Large trades may experience higher slippage than expected

Troubleshooting

Common Issues

Bot won't start:

# Check configuration
yarn hardhat run scripts/verify-config.ts

# Verify contract addresses
yarn hardhat run scripts/verify-contracts.ts

No profitable opportunities:

  • Check if routes are configured correctly in ROUTES environment variable

  • Verify API endpoints are returning current price data

  • Ensure sufficient liquidity exists in Balancer pools

  • Market conditions may not currently favor arbitrage

High gas costs:

  • Bot includes built-in gas cost analysis and will skip unprofitable trades

  • Consider running during off-peak hours for better opportunities

  • Monitor gas prices at https://etherscan.io/gastracker

Transaction failures:

  • Check if wallet has sufficient ETH for gas

  • Verify all contract addresses are correct

  • Ensure contracts are properly deployed and initialized

Debug Mode

The bot includes detailed console logging by default. For additional debugging, you can:

  • Check individual route messages in the console output

  • Verify contract addresses are correct

  • Ensure API endpoints are responding correctly

Performance Optimization

Hardware Recommendations

  • VPS/Cloud: Recommended for 24/7 operation

  • Memory: Minimum 2GB RAM

  • Network: Low-latency connection to Ethereum RPC

  • Storage: SSD recommended for faster operations

Optimization Tips

  1. Fast RPC: Use premium RPC providers (Alchemy, QuickNode)

  2. Multiple Routes: Monitor multiple routes for better opportunities

  3. Competitive Gas: Set appropriate gas prices for your strategy

  4. Regular Monitoring: Check performance metrics regularly

Conclusion

The TRP Arbitrage Bot provides a powerful, automated solution for capitalizing on arbitrage opportunities in the TRP ecosystem. By following this guide and implementing proper risk management practices, users can operate the bot safely and profitably.

Remember to always:

  • Test thoroughly before production use

  • Monitor operations closely

  • Keep configurations updated

  • Maintain proper security practices

  • Stay informed about protocol updates

  • USE AT YOUR OWN RISK

Happy arbitraging! 🚀

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