Project: Snowsight Arbitrage Bot

Tying It Together

Welcome back Degens!

This is another long project post where I will tie together many things I’ve covered over the past few weeks.

For background, I recommend reviewing the posts on mempool observation, asynchronous websocket listeners, the introduction to Snowsight, and the Snowsight transaction propagator.

This will be deeply technical and complex, so I won’t spend much time introducing the concept. This project will deliver a bot with the following features:

• Use a websocket subscription to observe new blocks and the latest base fee

• Use a websocket subscription to receive new Sync events for liquidity pools, then translates these sync events to reserve amounts.

• Maintain a continuous subscription to the Snowsight service by sending payments.

• Use the Snowsight mempool service to receive notifications for pending and completed transactions.

  • Using these notifications, track and dynamically adjust to fluctuating gas fees.

• Calculate and execute on profitable arbitrage opportunities.

• Send transactions through the Snowsight transaction propagator.

Though this project uses Snowsight, it does not take advantage of the mempool to frontrun and backrun transactions. The backrunning project was completed a few weeks after this was posted (link HERE), so review that if you’re interested.

This project also uses the Snowsight premium service as a low-latency way to submit transactions and improve our awareness of mempool competition to set our gas fees.

Here we go!