mev-beta/WALLET_SETUP.md

MEV Bot V2 - Wallet Setup Guide

IMPORTANT: This guide covers wallet configuration for Phase 1 (dry-run) deployment.

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🔐 Wallet Options

Option 1: Generate New Wallet (Recommended for Testing)

Using Foundry (cast):

# Generate a new random wallet
cast wallet new

# Output:
# Successfully created new keypair.
# Address: 0x1234...
# Private key: 0xabcdef1234567890...

Save the output securely:

• Address: Your wallet's public address (can be shared)
• Private Key: SECRET - never share this!

Option 2: Use Existing Wallet

If you have an existing wallet, you need the private key in hex format (64 characters, no 0x prefix for some tools).

Extract private key from MetaMask:

1. Open MetaMask
2. Click three dots menu → Account Details
3. Click "Export Private Key"
4. Enter password
5. Copy the 64-character hex string

⚠️ WARNING: Never use wallets with significant funds for testing!

Option 3: Generate Deterministic Test Wallet

For development only:

# Generate from mnemonic
cast wallet new --mnemonic

# Or use a test mnemonic (DO NOT USE IN PRODUCTION)
cast wallet new --mnemonic "test test test test test test test test test test test junk"

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📝 Configure .env File

Phase 1 Configuration (Dry-Run - NO Trading)

Edit .env file:

# === WALLET CONFIGURATION ===
# Private key without 0x prefix (64 hex characters)
PRIVATE_KEY=abcdef1234567890abcdef1234567890abcdef1234567890abcdef1234567890

# === RPC ENDPOINTS (Already configured) ===
ARBITRUM_RPC_ENDPOINT=wss://arbitrum-mainnet.core.chainstack.com/53c30e7a941160679fdcc396c894fc57
ARBITRUM_WS_ENDPOINT=wss://arbitrum-mainnet.core.chainstack.com/53c30e7a941160679fdcc396c894fc57

# === SAFETY SETTINGS (CRITICAL) ===
ENABLE_EXECUTION=false   # MUST be false for Phase 1
DRY_RUN_MODE=true        # MUST be true for Phase 1

Validation:

# Check private key is set
grep "^PRIVATE_KEY=" .env

# Verify it's not the placeholder
grep "^PRIVATE_KEY=" .env | grep -v "???"

# Confirm dry-run is enabled
grep "DRY_RUN_MODE=true" .env

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💰 Fund Wallet (Phase 1)

For Phase 1 (Dry-Run):

NO FUNDING REQUIRED - Bot will not execute trades.

However, a small amount of ETH helps with testing:

• Recommended: 0.001-0.01 ETH (for RPC call costs, if any)
• Purpose: Validation, not trading

For Phase 3 (Live Trading):

When ready to enable execution (AFTER Phase 1 succeeds):

• Minimum: 0.1 ETH
• Recommended: 0.1-0.5 ETH
• Purpose: Gas costs + small arbitrage positions

Bridge ETH to Arbitrum:

1. Use official Arbitrum bridge: https://bridge.arbitrum.io/
2. Or use exchanges: Binance, Coinbase, etc. (withdraw directly to Arbitrum)

Check Balance:

# Using cast
cast balance <YOUR_ADDRESS> --rpc-url https://arb1.arbitrum.io/rpc

# Using the bot's RPC
WALLET_ADDRESS=$(cast wallet address --private-key $PRIVATE_KEY)
cast balance $WALLET_ADDRESS --rpc-url https://arb1.arbitrum.io/rpc

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✅ Verification Checklist

Before deploying:

• Private key configured in .env
• No "???" placeholder in PRIVATE_KEY
• DRY_RUN_MODE=true (for Phase 1)
• ENABLE_EXECUTION=false (for Phase 1)
• Wallet address derived and noted down
• Balance checked (optional for Phase 1)
• RPC connectivity tested

Verification Script:

# Extract wallet address from private key
WALLET_ADDRESS=$(cast wallet address --private-key $(grep "^PRIVATE_KEY=" .env | cut -d'=' -f2))
echo "Wallet Address: $WALLET_ADDRESS"

# Check balance
cast balance $WALLET_ADDRESS --rpc-url https://arb1.arbitrum.io/rpc

# Test RPC connectivity
cast block-number --rpc-url $(grep "^ARBITRUM_RPC_ENDPOINT=" .env | cut -d'=' -f2)

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🔒 Security Best Practices

Critical Security Rules:

1. NEVER commit .env to git

   • .env is in .gitignore
   • Double-check before git push

2. NEVER share private key

   • Not in Discord, Telegram, email, etc.
   • Not in screenshots or logs

3. Use dedicated wallet

   • Don't use personal wallet with significant funds
   • Create separate wallet just for MEV bot

4. Limit funds

   • Phase 1: 0-0.01 ETH
   • Phase 3: 0.1-0.5 ETH maximum
   • Never deposit more than max daily volume + gas buffer

5. Monitor continuously

   • Check balance every 4 hours during Phase 1
   • Set up alerts for balance changes

6. Backup securely

   • Save private key in password manager
   • Write down on paper and store safely
   • NEVER save in cloud storage unencrypted

Access Control:

# Restrict .env file permissions
chmod 600 .env

# Only owner can read/write
ls -la .env
# -rw------- 1 user user 1234 date .env

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🚨 Emergency Procedures

If Private Key Compromised:

1. Immediately transfer funds to safe wallet:

# Transfer all ETH to safe address
cast send <SAFE_ADDRESS> \
  --value $(cast balance <COMPROMISED_ADDRESS>) \
  --private-key <COMPROMISED_PRIVATE_KEY> \
  --rpc-url https://arb1.arbitrum.io/rpc

2. Stop bot:

podman stop mev-bot-v2-phase1

3. Generate new wallet:

cast wallet new

4. Update .env with new private key

5. Never use compromised wallet again

If Wallet Drained:

1. Stop bot immediately
2. Check transaction history on Arbiscan
3. Analyze what happened
4. Don't add more funds until root cause found

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📞 Support

Common Issues:

"Invalid private key" error:

• Ensure 64 hex characters (no 0x prefix in .env)
• Check for spaces or newlines in .env
• Verify key is valid: cast wallet address --private-key <KEY>

"Insufficient funds" error (Phase 1):

• Should not occur in dry-run mode
• If it does, add 0.001 ETH for RPC call costs

"Cannot derive address" error:

• Private key format incorrect
• Try adding/removing 0x prefix
• Regenerate wallet if unsure

Validation Commands:

# Verify private key format
PRIVATE_KEY=$(grep "^PRIVATE_KEY=" .env | cut -d'=' -f2)
echo ${#PRIVATE_KEY}  # Should be 64

# Derive and display address
cast wallet address --private-key $PRIVATE_KEY

# Test signing (doesn't broadcast)
cast wallet sign "test" --private-key $PRIVATE_KEY

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✅ You're Ready When:

• Private key configured in .env
• Wallet address derived successfully
• RPC connectivity verified
• DRY_RUN_MODE=true confirmed
• ENABLE_EXECUTION=false confirmed
• .env file permissions secured (chmod 600)
• Backup of private key created and stored safely

Next Step: Run ./scripts/deploy_phase1.sh

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Last Updated: 2025-11-11 For: MEV Bot V2 - Phase 1 Deployment