The digital managers? Arbitrage bot development by Rock’n’Block
22 Jul 2022At the current stage of evolution, these bots have already accumulated many abilities and proven their efficiency.
Humanity not only invented repeatable programs but integrated them into lots of life spheres. Thus bots are just software able to perform any kinds of tasks the creator wants, they’ve taken their role in blockchain space too. Arbitrage bots became inanimate market players, simplifying things for ones and complicating for others. Let’s unwrap that.
What can they do?
In crypto, arbitrage usually reflects 2 meanings.
Firstly, buying tokens from one exchange and selling them to another. Bots monitor the price of the chosen token to find a divergence. The logic is clear: buy cheaper and sell more expensive.
Secondly, arbitrage bots can influence the token’s price via buying or selling huge amounts of its units. This is useful if the token’s creator needs it to balance in a certain price range. The same mechanics can both imitate stablecoin performance and cause price pumps/ drops.
Of course, blockchain enthusiasts regularly come up with new methods of bot usage, but this article is aimed to show what you can do now and how.
Arbitrage bot development by Rock’n’Block
Our latest showcase is a bot that follows the second principle mentioned above and keeps the price in a set range. This guy operates on 3 DEXes, which are located on separate networks — Binance Smart Chain, Ethereum network, and Polygon. The bot has an amount of liquidity in the X token and native token. It is enough to manipulate the price of X by adding liquidity to the DEX or pulling it out.
From the viewpoint of development, this bot is a backend software running on 3 rented nodes (1 node for each network) and communicating with smart contracts. It doesn’t have a beautiful interface, but it has a functional Django admin panel that allows the owner to set any preferred parameters.
For the not familiar: nodes are like servers, but on the blockchain; to make anything work, you give it some computing power and connect it to the web, so this is what nodes are doing.
The stack of the project is:
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Python
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WEB3
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Django
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RabbitMQ
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PostgreSQL
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Solidity
Resume
Today can give you more than you think if you know where to aim. Arbitrage bots are developed not only for personal use but also for the public. You can become one of such projects offering bots in a SaaS way (Solution as a Service). As a blockchain development team, we’d be glad to help you and give your project a powerful software base.
Rock’n’Block’s team is not limited in development. We can help with:
⚡️NFT and NFT marketplaces development
⚡️White label launchpad development solutions
⚡️Deflationary token development
⚡️Any other custom request from a crypto wallet development to custom blockchain development.
If you’re interested in building your blockchain project, feel free to contact our team via the Telegram channel or book a call via Calendly.
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