MEV Bot Framework
Strategy Categories
1. Sandwich Attacks
Description: Profit from transaction ordering by placing buy and sell orders around target transactions.
Implementation:
Risk Management:
Maximum gas price limits
Slippage protection mechanisms
Blacklist of protected transactions
Regulatory compliance filters
2. Arbitrage Opportunities
Description: Exploit price differences across decentralized exchanges.
Cross-Chain Arbitrage:
Bridge optimization for multi-chain trades
Flash loan integration for capital efficiency
Real-time price monitoring across 50+ DEXs
Automated execution with profit guarantees
3. Liquidation Bots
Description: Automated liquidation of undercollateralized positions in lending protocols.
Supported Protocols:
Aave (Ethereum, Polygon, Avalanche)
Compound (Ethereum)
Venus (BNB Chain)
Solend (Solana)
4. Copy Trading
Description: Replicate successful trader strategies automatically.
Features:
Wallet tracking and analysis
Proportional position sizing
Risk-adjusted copying
Performance attribution
Strategy Performance Optimization
Machine Learning Integration
Reinforcement Learning: Continuous strategy improvement through trial and error
Supervised Learning: Pattern recognition from historical successful trades
Unsupervised Learning: Market regime detection and adaptation
Ensemble Methods: Combining multiple models for robust predictions
Risk Management
Position Sizing: Kelly criterion and risk parity approaches
Stop Losses: Dynamic stop-loss adjustment based on volatility
Diversification: Cross-strategy and cross-chain risk distribution
Stress Testing: Monte Carlo simulation for worst-case scenario planning
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