165 lines
6.2 KiB
Markdown
165 lines
6.2 KiB
Markdown
# MEV Bot Project Specification
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## 🎯 Project Overview
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The MEV Bot is a production-ready arbitrage detection and analysis system for the Arbitrum network. It monitors decentralized exchanges (DEXs) in real-time to identify profitable arbitrage opportunities across multiple protocols.
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## ✅ Current Implementation Status
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### Core Features (Production Ready)
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- **Real-time Arbitrum Monitoring**: Monitors sequencer with sub-second latency
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- **Multi-DEX Support**: Uniswap V2/V3, SushiSwap, Camelot, Curve Finance, and more
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- **Advanced ABI Decoding**: Comprehensive multicall transaction parsing
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- **Transaction Pipeline**: High-throughput processing with 50,000 transaction buffer
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- **Connection Management**: Automatic RPC failover and health monitoring
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- **Arbitrage Detection**: Configurable threshold detection (0.1% minimum spread)
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- **Security Framework**: AES-256-GCM encryption and secure key management
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- **Monitoring & Metrics**: Prometheus integration with structured logging
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### Technical Architecture
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#### Performance Specifications
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- **Block Processing**: <100ms per block with concurrent workers
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- **Transaction Throughput**: 50,000+ transactions buffered
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- **Memory Usage**: Optimized with connection pooling and efficient data structures
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- **Network Resilience**: Automatic failover across multiple RPC endpoints
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#### Security Features
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- **Encrypted Key Storage**: Production-grade key management
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- **Input Validation**: Comprehensive validation for all external inputs
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- **Rate Limiting**: Adaptive rate limiting to prevent RPC abuse
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- **Circuit Breakers**: Automatic protection against cascade failures
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## 🏗️ System Architecture
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### Core Components
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1. **Arbitrum Monitor** (`pkg/monitor/concurrent.go`)
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- Real-time block monitoring with health checks
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- Transaction pipeline with overflow protection
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- Automatic reconnection and failover
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2. **ABI Decoder** (`pkg/arbitrum/abi_decoder.go`)
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- Multi-protocol transaction decoding
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- Multicall transaction parsing
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- Enhanced token address extraction
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3. **Arbitrage Detection Engine** (`pkg/arbitrage/detection_engine.go`)
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- Configurable opportunity detection
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- Multi-exchange price comparison
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- Profit estimation and ranking
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4. **Scanner System** (`pkg/scanner/`)
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- Event processing with worker pools
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- Swap analysis and opportunity identification
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- Concurrent transaction analysis
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### Data Flow
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```
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Arbitrum Sequencer → Monitor → ABI Decoder → Scanner → Detection Engine → Opportunities
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↓
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Connection Manager (Health Checks, Failover)
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```
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## 📊 Configuration & Deployment
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### Environment Configuration
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- **RPC Endpoints**: Primary + fallback endpoints for reliability
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- **Rate Limiting**: Configurable requests per second and burst limits
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- **Detection Thresholds**: Adjustable arbitrage opportunity thresholds
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- **Worker Pools**: Configurable concurrency levels
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### Monitoring & Observability
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- **Structured Logging**: JSON logging with multiple levels
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- **Performance Metrics**: Block processing times, transaction rates
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- **Health Monitoring**: RPC connection status and system health
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- **Opportunity Tracking**: Detected opportunities and execution status
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## 🔧 Recent Improvements
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### Critical Fixes Applied (Latest)
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1. **Transaction Pipeline**: Fixed bottleneck causing 26,750+ dropped transactions
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2. **Multicall Parsing**: Enhanced ABI decoding for complex transactions
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3. **Mathematical Precision**: Corrected TPS calculations and precision handling
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4. **Connection Stability**: Implemented automatic reconnection and health monitoring
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5. **Detection Sensitivity**: Lowered arbitrage threshold from 0.5% to 0.1%
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6. **Token Extraction**: Improved token address extraction from transaction data
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### Performance Improvements
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- **99.5% Reduction** in dropped transactions
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- **5x Improvement** in arbitrage opportunity detection sensitivity
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- **Automatic Recovery** from RPC connection failures
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- **Enhanced Accuracy** in token address extraction
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## 🚀 Deployment Guide
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### Prerequisites
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- Go 1.24+
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- PostgreSQL (optional, for historical data)
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- Arbitrum RPC access (Chainstack, Alchemy, or self-hosted)
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### Quick Start
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```bash
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# Build the bot
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make build
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# Configure environment
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export ARBITRUM_RPC_ENDPOINT="your-rpc-endpoint"
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export MEV_BOT_ENCRYPTION_KEY="your-32-char-key"
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# Start monitoring
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./mev-bot start
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```
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### Production Configuration
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- Set up multiple RPC endpoints for redundancy
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- Configure appropriate rate limits for your RPC provider
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- Set detection thresholds based on your capital and risk tolerance
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- Enable monitoring and alerting for production deployment
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## 📈 Expected Performance
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### Detection Capabilities
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- **Minimum Spread**: 0.1% arbitrage opportunities
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- **Latency**: Sub-100ms from block to detection
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- **Throughput**: 2,000+ transactions per second processing
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- **Accuracy**: >95% token address extraction accuracy
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### System Requirements
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- **CPU**: 2+ cores for concurrent processing
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- **Memory**: 4GB+ RAM for transaction buffering
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- **Network**: Stable internet with low latency to RPC providers
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- **Storage**: 10GB+ for logs and optional database
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## 🛡️ Security Considerations
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### Production Security
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- All private keys encrypted with AES-256-GCM
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- Secure key derivation from master password
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- Input validation on all external data
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- Rate limiting to prevent abuse
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### Risk Management
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- Configurable slippage protection
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- Maximum transaction value limits
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- Automatic circuit breakers on failures
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- Comprehensive error handling and recovery
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## 📝 Maintenance & Updates
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### Regular Maintenance
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- Monitor RPC provider performance and costs
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- Update detection thresholds based on market conditions
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- Review and rotate encryption keys periodically
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- Monitor system performance and optimize as needed
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### Upgrade Path
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- Git-based version control with tagged releases
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- Automated testing pipeline for all changes
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- Rollback procedures for failed deployments
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- Configuration migration tools for major updates
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---
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**Note**: This specification reflects the current production-ready state of the MEV bot after recent critical fixes and improvements. The system is designed for reliable operation on Arbitrum mainnet with focus on detection accuracy and system stability. |