copper-tone-tech/mev-beta
1
0
Fork 0
Code Issues Pull Requests 7 Actions Packages Projects Releases Wiki Activity
Files
65f0dc34f8e742f4f1681c5ed8ed8f712b69bbe0
mev-beta/docs/archive/PRODUCTION_READINESS_STATUS.md
Administrator 7694811784 ...
2025-11-17 20:45:05 +01:00

9.5 KiB
Raw Blame History

MEV Bot V2 - Production Readiness Status

Date: 2025-11-10
Version: 1.0.0-rc1
Status: 🟡 TESTING PHASE - SAFE FOR SMALL-SCALE TESTING ONLY

Executive Summary

The MEV Bot V2 has comprehensive safety mechanisms in place but is NOT ready for large capital deployment. It is suitable for:

  • ✅ Dry-run monitoring (simulation mode)
  • ✅ Small-scale testing (0.1-1 ETH capital)
  • ✅ Testnet validation

DO NOT deploy with significant capital (>5 ETH) until all validation phases complete

Readiness Assessment

✅ Ready for Production

Component Status Notes
Compilation & Build ✅ READY All packages compile successfully
Docker Containerization ✅ READY 31.6MB optimized image
Safety Configuration ✅ READY Comprehensive .env.production.safe
Deployment Documentation ✅ READY 20+ page deployment guide
Safety Checklists ✅ READY Pre-deployment & monitoring checklists
Circuit Breaker Config ✅ READY Configured (needs testing)
Emergency Stop ✅ READY File-based mechanism (needs testing)
Position Size Limits ✅ READY Configured conservatively
Dry-Run Mode ✅ READY Simulation without execution

⚠️ Needs Validation Before Large Capital

Component Status Risk Level Blocker?
Profit Calculations ⚠️ UNTESTED 🔴 HIGH YES
Circuit Breaker ⚠️ UNTESTED 🔴 HIGH YES
Emergency Stop ⚠️ UNTESTED 🟠 MEDIUM YES
Execution Logic ⚠️ UNTESTED 🔴 HIGH YES
Gas Estimation ⚠️ UNTESTED 🟠 MEDIUM NO
Slippage Protection ⚠️ UNTESTED 🔴 HIGH YES

❌ Not Ready / Missing

Component Status Impact Timeline
WebSocket Sequencer ❌ FAILING Can't monitor pending txs 1 week
Archive RPC Integration ❌ MISSING Pool discovery limited Immediate
Real-time Pool Discovery ❌ HARDCODED Stale data risk 1 week
Profit Validation Tests ❌ MISSING Unknown calculation accuracy 3 days
Testnet Validation ❌ NOT DONE Execution untested 1 week
Performance Benchmarks ❌ MISSING Latency unknown 3 days
Monitoring/Alerting ❌ BASIC ONLY Limited visibility 3 days

Safety Features Status

✅ Implemented

  1. Dry-Run Mode - Simulation without real transactions
  2. Position Size Limits - Max 1 ETH per trade (configurable)
  3. Daily Volume Limits - Max 10 ETH daily (configurable)
  4. Slippage Protection - 1% max slippage (configurable)
  5. Gas Price Limits - 50 gwei max (configurable)
  6. Minimum Profit Thresholds - 0.05 ETH minimum (configurable)
  7. Circuit Breaker Configuration - Stops after 3 losses or hourly/daily limits
  8. Emergency Stop File - Touch file to immediately stop
  9. Rate Limiting - Max trades per hour configurable
  10. Comprehensive Logging - Structured logs for all operations

⚠️ Configured But Untested

  1. Circuit Breaker Logic - Code exists, needs real-world testing
  2. Emergency Stop - Mechanism in place, needs testing
  3. Transaction Simulation - Pre-flight checks before execution
  4. Sandwich Attack Protection - Slippage limits should help
  5. Gas Cost Validation - Checks profit > gas cost

❌ Missing / To Be Implemented

  1. Real-time Profit Validation - Need known test scenarios
  2. Historical Backtesting - Validate strategy on past data
  3. Multi-RPC Failover - Single point of failure
  4. Advanced Monitoring - Grafana dashboards need setup
  5. Automated Alerting - Webhook integration needs configuration

Deployment Recommendation

Phase 1: DRY-RUN (Days 1-3) - ✅ SAFE TO START

# Copy and configure
cp .env.production.safe .env.production

# Edit with your RPC and keys
nano .env.production

# Deploy in dry-run mode
docker build -t mev-bot-v2:production .
docker run -d --name mev-bot-v2-prod \
  --env-file .env.production \
  mev-bot-v2:production

# Monitor for 24+ hours
docker logs -f mev-bot-v2-prod

Capital Required: None (simulation only)
Risk Level: 🟢 NONE (no real transactions)
Success Criteria: Stable for 24h, opportunities detected, no errors

Phase 2: TESTNET (Days 4-7) - ✅ SAFE IF PHASE 1 SUCCESSFUL

# Switch to Arbitrum Sepolia testnet
# Edit .env.production:
CHAIN_ID=421614
RPC_URL=https://sepolia-rollup.arbitrum.io/rpc
ENABLE_EXECUTION=true

Capital Required: Testnet ETH (free from faucet)
Risk Level: 🟢 NONE (testnet has no value)
Success Criteria: Transactions execute, circuit breaker works, no bugs

Phase 3: MAINNET MICRO-TEST (Days 8-14) - ⚠️ USE CAUTION

# Switch to mainnet with strict limits
# Edit .env.production:
CHAIN_ID=42161
RPC_URL=https://arb-mainnet.g.alchemy.com/v2/YOUR_KEY
MAX_POSITION_SIZE=100000000000000000  # 0.1 ETH only!
MAX_DAILY_VOLUME=500000000000000000   # 0.5 ETH max

Capital Required: 0.5-1 ETH (amount willing to lose for testing)
Risk Level: 🟠 MEDIUM (real money, small amounts)
Success Criteria: Net profitable over 7 days

Phase 4: GRADUAL SCALE (Weeks 3-8) - ⚠️ ONLY IF PROFITABLE

Capital Required: Start 1 ETH, gradually increase
Risk Level: 🔴 HIGH (larger capital at risk)
Prerequisite: Phase 3 must be net profitable

Current Blockers for Large-Scale Deployment

  1. BLOCKER: Profit calculations not validated

    • Impact: Could lose money on unprofitable trades
    • Solution: Create test scenarios with known outcomes
    • Timeline: 3 days

  2. BLOCKER: Execution logic not tested on mainnet

    • Impact: Unknown transaction success rate
    • Solution: Complete Phase 2 & 3 testing
    • Timeline: 1-2 weeks

  3. BLOCKER: Circuit breaker not tested in real conditions

    • Impact: May not stop losses as expected
    • Solution: Test on testnet with losing scenarios
    • Timeline: 3 days

  4. CRITICAL: Archive RPC not configured

    • Impact: Pool discovery uses stale data
    • Solution: Get Alchemy/QuickNode subscription
    • Timeline: Immediate (just configuration)

  5. CRITICAL: WebSocket sequencer connection failing

    • Impact: Missing pending transactions
    • Solution: Debug WebSocket connection or use polling
    • Timeline: 1 week

Estimated Timeline to Full Production Ready

Optimistic (everything works first try): 2-3 weeks

  1. Week 1: Archive RPC + Dry-run + Testnet
  2. Week 2: Mainnet micro-test
  3. Week 3: Gradual scale if profitable

Realistic (normal development): 4-6 weeks

  1. Week 1-2: Testing & validation, fix issues
  2. Week 3-4: Testnet + mainnet micro-test
  3. Week 5-6: Validate profitability, gradual scale

Conservative (issues found): 8-12 weeks

  1. Month 1: Testing finds calculation errors, needs fixes
  2. Month 2: Re-testing after fixes
  3. Month 3: Gradual deployment & validation

Infrastructure Costs

Item Cost Required?
Archive RPC (Alchemy/QuickNode) $200-500/mo YES
Private RPC (Flashbots) Free Recommended
Dedicated Server $50-200/mo YES
Monitoring (self-hosted) Free YES
Alerting (Slack/Discord) Free YES

Total Monthly Cost: $250-700/month minimum

Break-even: Need to generate >$300/month profit just to cover costs

Risk Assessment

🟢 LOW RISK - Safe to Deploy Now

  • Dry-run monitoring (Phase 1)
  • Testnet testing (Phase 2)
  • Documentation review

🟠 MEDIUM RISK - Use Extreme Caution

  • Mainnet micro-testing with 0.1-1 ETH (Phase 3)
  • Small position sizes (<1 ETH)
  • With ALL safety mechanisms enabled

🔴 HIGH RISK - DO NOT DO YET

  • Deployment with >5 ETH capital
  • Disabling safety mechanisms
  • Increasing position sizes before validation
  • Automated operation without monitoring

Next Steps (Recommended Order)

  1. Immediate (Today):

    • Get Archive RPC subscription (Alchemy/QuickNode)
    • Review PRODUCTION_DEPLOYMENT_GUIDE.md
    • Review SAFETY_CHECKLIST.md

  2. This Week:

    • Start Phase 1: Dry-run for 24+ hours
    • Create profit validation test scenarios
    • Fix WebSocket sequencer connection
    • Set up monitoring (Prometheus + Grafana)

  3. Next Week:

    • Start Phase 2: Testnet deployment
    • Test circuit breaker
    • Test emergency stop
    • Validate profit calculations

  4. Week 3-4:

    • Start Phase 3: Mainnet micro-test (0.1-1 ETH)
    • Monitor continuously
    • Calculate actual ROI
    • Assess profitability

  5. Month 2+ (If Profitable):

    • Gradually increase capital
    • Optimize parameters
    • Expand to more pools
    • Track long-term performance

Conclusion

The bot CAN be deployed safely for testing, BUT:

  • Start with dry-run mode (no real transactions)
  • Use testnet before mainnet
  • Start with tiny amounts on mainnet (0.1-1 ETH)
  • Follow the deployment guide strictly
  • Monitor continuously
  • Stop immediately if unprofitable

The bot is NOT ready for:

  • Large capital deployment (>5 ETH)
  • Automated operation without monitoring
  • Production use without validation

Follow the 4-phase deployment sequence to minimize risk and validate profitability before scaling.

Remember: It's better to spend 4-6 weeks testing carefully than to lose significant capital in the first hour of deployment.

Start small. Scale slowly. Stop quickly if problems occur.

Reference in New Issue View Git Blame Copy Permalink