Welcome to the world of DeFi! In this blog, we’ll guide you through the process of setting up an open-source flashloan bot on the Polygon network. The journey involves some key prerequisites and clear steps, so let’s unlock the door to automated financial opportunities!
Prerequisites
- Familiarity with deploying smart contracts on Ethereum-based networks.
- Access to the smart contract provided here.
Installation Steps
1. Install Required Software
You need to have Node.js and Yarn installed on your system.
2. Clone the Repository
Run the following commands in your terminal:
bash
$ git clone https://github.com/yuichiroaoki/poly-flashloan-bot.git
$ cd poly-flashloan-bot
3. Setup Environment Variables
You’ll need to configure some environment variables. Start by obtaining an Alchemy Polygon RPC URL from the Alchemy website (it’s free!). Create a .env file and add:
bash
ALCHEMY_POLYGON_RPC_URL=your-own-alchemy-polygon-mainnet-rpc-url
PRIVATE_KEY=your-PRIVATE_KEY
Remember to prepend your private key with ‘0x’ if using MetaMask! For example: 0x123…abc
4. Install Dependencies
Run the command:
bash
yarn install
5. Build Your Bot
Next, build your bot with the command:
bash
yarn build
6. Run the Bot
You are now ready to start your bot!
bash
yarn start
Configuration
Edit the configuration in src/config.ts to replace the flashloan address with your deployed contract address if you’ve deployed one. Updating your flashloan smart contract also means updating the ABI.
Understanding Flashloans: A Simple Analogy
Imagine you want to buy a house but only have enough money to rent one for the day. A flashloan enables you to ‘borrow’ those funds just for that brief moment. You can make money by selling high and buying low, as long as you return the money before your day ends. This same principle applies to our bot. It performs transactions that borrow funds, executes a profit-making opportunity (arbitrage), and ensures that it pays back the borrowed amount before the transaction concludes.
Troubleshooting
If you encounter issues while setting up or running your flashloan bot, consider the following:
- Ensure your Node.js and Yarn versions are up-to-date.
- Double-check your environment variable entries for typos, especially your RPC URL and private key.
- Refer to the Reasons why my flashloan bot didn’t work video for additional insights.
- If the bot fails to run, restart your terminal or IDE and run the commands again.
For more insights, updates, or to collaborate on AI development projects, stay connected with fxis.ai.
Additional Notes
This bot showcases how a flashloan bot operates on the Polygon network; however, it is not designed for profitability. Always conduct thorough research and testing.
Conclusion
At fxis.ai, we believe that such advancements are crucial for the future of AI, as they enable more comprehensive and effective solutions. Our team is continually exploring new methodologies to push the envelope in artificial intelligence, ensuring that our clients benefit from the latest technological innovations.