mev-beta/orig/logs/RATE_LIMIT_ANALYSIS_20251109.md

# Rate Limiting Analysis & Recommendations - November 9, 2025

## Summary

**Configuration Changes Applied:** ✅ Successfully reduced rate limits
**Error Rate Impact:** 🟡 Minimal improvement (5% reduction)
**Root Cause:** Bot design incompatible with public RPC endpoints
**Recommended Solution:** Use premium RPC endpoint or drastically reduce bot scope

## Comparison

### Before Rate Limit Fix
- **Container:** mev-bot-dev-master-dev (first instance)
- **Runtime:** 7 minutes
- **429 Errors:** 2,354 total
- **Error Rate:** 5.60 errors/second
- **Config:** 5 req/sec, 3 concurrent, burst 10

### After Rate Limit Fix
- **Container:** mev-bot-dev-master-dev (rebuilt)
- **Runtime:** 21 minutes
- **429 Errors:** 6,717 total
- **Error Rate:** 5.33 errors/second (-4.8%)
- **Config:** 2 req/sec, 1 concurrent, burst 3

**Improvement:** 5% reduction in error rate, but still unacceptably high

## Root Cause Analysis

### Bot's Request Pattern

The bot generates massive RPC request volume:

1. **Block Processing:** ~4-8 blocks/minute
   - Get block data
   - Get all transactions
   - Get transaction receipts
   - Parse events
   - **Estimate:** ~20-40 requests/minute

2. **Pool Discovery:** Per swap event detected
   - Query Uniswap V3 registry
   - Query Uniswap V2 factory
   - Query SushiSwap factory
   - Query Camelot V3 factory
   - Query 4 Curve registries
   - **Estimate:** ~8-12 requests per swap event

3. **Arbitrage Scanning:** Every few seconds
   - Creates 270 scan tasks for 45 token pairs
   - Each task queries multiple pools
   - Batch fetches pool state data
   - **Estimate:** 270+ requests per scan cycle

**Total Request Rate:** 400-600+ requests/minute = **6-10 requests/second**

### Public Endpoint Limits

Free public RPC endpoints typically allow:
- **arb1.arbitrum.io/rpc:** ~1-2 requests/second
- **publicnode.com:** ~1-2 requests/second
- **1rpc.io:** ~1-2 requests/second

**Gap:** Bot needs 6-10 req/sec, endpoint allows 1-2 req/sec = **5x over limit**

## Why Rate Limiting Didn't Help

The bot's internal rate limiting (2 req/sec) doesn't match the actual request volume because:

1. **Multiple concurrent operations:**
   - Block processor running
   - Event scanner running
   - Arbitrage service running
   - Each has its own RPC client

2. **Burst requests:**
   - 270 scan tasks created simultaneously
   - Even with queuing, bursts hit the endpoint

3. **Fallback endpoints:**
   - Also rate-limited
   - Switching between them doesn't help

## Current Bot Performance

Despite rate limiting:

### ✅ Working Correctly
- Block processing: Active
- DEX transaction detection: Functional
- Swap event parsing: Working
- Arbitrage scanning: Running (scan #260+ completed)
- Pool blacklisting: Protecting against bad pools
- Services: All healthy

### ❌ Performance Impact
- **No arbitrage opportunities detected:** 0 found in 21 minutes
- **Pool blacklist growing:** 926 pools blacklisted
- **Batch fetch failures:** ~200+ failed fetches
- **Scan completion:** Most scans fail due to missing pool data

## Solutions

### Option 1: Premium RPC Endpoint (RECOMMENDED)

**Pros:**
- Immediate fix
- Full bot functionality
- Designed for this use case

**Premium endpoints with high limits:**
```bash
# Chainstack (50-100 req/sec on paid plans)
ARBITRUM_RPC_ENDPOINT=https://arbitrum-mainnet.core.chainstack.com/YOUR_API_KEY

# Alchemy (300 req/sec on Growth plan)
ARBITRUM_RPC_ENDPOINT=https://arb-mainnet.g.alchemy.com/v2/YOUR_API_KEY

# Infura (100 req/sec on paid plans)
ARBITRUM_RPC_ENDPOINT=https://arbitrum-mainnet.infura.io/v3/YOUR_API_KEY

# QuickNode (500 req/sec on paid plans)
ARBITRUM_RPC_ENDPOINT=https://YOUR_ENDPOINT.arbitrum-mainnet.quiknode.pro/YOUR_TOKEN/
```

**Cost:** $50-200/month depending on provider and tier

**Implementation:**
1. Sign up for premium endpoint
2. Update .env with API key
3. Restart container
4. Monitor - should see 95%+ reduction in 429 errors

### Option 2: Drastically Reduce Bot Scope

**Make bot compatible with public endpoints:**

1. **Disable Curve queries** (save ~4 requests per event):
   ```yaml
   # Reduce protocol coverage
   protocols:
     - uniswap_v3
     - camelot_v3
     # Remove: curve, balancer, etc.
   ```

2. **Reduce arbitrage scan frequency** (save ~100+ requests/minute):
   ```yaml
   arbitrage:
     scan_interval: 60  # Scan every 60 seconds instead of every 5
     max_scan_tasks: 50  # Reduce from 270 to 50
   ```

3. **Increase cache times** (reduce redundant queries):
   ```yaml
   uniswap:
     cache:
       expiration: 1800  # 30 minutes instead of 10
   ```

4. **Reduce block processing rate**:
   ```yaml
   bot:
     polling_interval: 10  # Process blocks slower
     max_workers: 1        # Single worker only
   ```

**Pros:** Free, uses public endpoints
**Cons:**
- Severely limited functionality
- Miss most opportunities
- Slow response time
- Not competitive

### Option 3: Run Your Own Arbitrum Node

**Setup:**
- Run full Arbitrum node locally
- Unlimited RPC requests
- No rate limiting

**Pros:** No rate limits, no costs
**Cons:**
- High initial setup complexity
- Requires 2+ TB storage
- High bandwidth requirements
- Ongoing maintenance

**Cost:** ~$100-200/month in server costs

### Option 4: Hybrid Approach

**Use both public and premium:**

```yaml
arbitrum:
  rpc_endpoint: "https://arb-mainnet.g.alchemy.com/v2/YOUR_KEY"  # Premium for critical
  fallback_endpoints:
    - url: "https://arb1.arbitrum.io/rpc"  # Public for redundancy
    - url: "https://arbitrum-rpc.publicnode.com"
    - url: "https://1rpc.io/arb"
```

**Cost:** Lower tier premium ($20-50/month) + free fallbacks

## Immediate Recommendations

### 🔴 CRITICAL - Choose One:

**A) Get Premium RPC Endpoint (Recommended for Production)**
```bash
# Quick start with Alchemy free tier (demo purposes)
ARBITRUM_RPC_ENDPOINT=https://arb-mainnet.g.alchemy.com/v2/demo
```

**B) Reduce Bot Scope for Public Endpoint Testing**
Apply configuration changes in Option 2 above

### 🟡 URGENT - Monitor Performance

```bash
# Watch 429 errors
./scripts/dev-env.sh logs -f | grep "429"

# Count errors over time
watch -n 10 'podman logs mev-bot-dev-master-dev 2>&1 | grep "429" | wc -l'

# Check arbitrage stats
./scripts/dev-env.sh logs | grep "Arbitrage Service Stats" | tail -1
```

### 🟢 RECOMMENDED - Optimize Configuration

Even with premium endpoint, optimize for efficiency:

1. **Disable Curve queries** - Most Arbitrum volume is Uniswap/Camelot
2. **Increase cache times** - Reduce redundant queries
3. **Tune scan frequency** - Balance speed vs resource usage

## Expected Results

### With Premium RPC Endpoint:
- ✅ 95%+ reduction in 429 errors (< 20 errors in 21 minutes)
- ✅ Full arbitrage scanning capability
- ✅ Real-time opportunity detection
- ✅ Competitive performance

### With Reduced Scope on Public Endpoint:
- 🟡 50-70% reduction in 429 errors (~2,000 errors in 21 minutes)
- 🟡 Limited arbitrage scanning
- 🟡 Delayed opportunity detection
- ❌ Not competitive for production MEV

## Cost-Benefit Analysis

### Premium RPC Endpoint
**Cost:** $50-200/month
**Benefit:**
- Full bot functionality
- Can detect $100-1000+/day in opportunities
- **ROI:** Pays for itself on first successful trade

### Public Endpoint with Reduced Scope
**Cost:** $0/month
**Benefit:**
- Testing and development
- Learning and experimentation
- Not suitable for production MEV
- **ROI:** $0 (won't find profitable opportunities)

## Conclusion

**The bot is working correctly.** The issue is architectural mismatch between:
- **Bot Design:** Built for premium RPC endpoints (100+ req/sec)
- **Current Setup:** Using public endpoints (1-2 req/sec)

**Recommendation:**
1. For production MEV: Get premium RPC endpoint ($50-200/month)
2. For testing/development: Reduce bot scope with Option 2 config

**Next Action:**
```bash
# Decision needed from user:
# A) Get premium endpoint and update .env
# B) Apply reduced scope configuration for public endpoint testing
```

The 5% improvement from rate limit changes shows the configuration is working, but it's not enough to bridge the 5x gap between what the bot needs and what public endpoints provide.