mev-beta/contracts/ArbitrageExecutor.sol

// SPDX-License-Identifier: MIT
pragma solidity ^0.8.10;

import {FlashLoanSimpleReceiverBase} from "@aave/core-v3/contracts/flashloan/base/FlashLoanSimpleReceiverBase.sol";
import {IPoolAddressesProvider} from "@aave/core-v3/contracts/interfaces/IPoolAddressesProvider.sol";
import {IERC20} from "@openzeppelin/contracts/token/ERC20/IERC20.sol";

// Uniswap V2 Router interface
interface IUniswapV2Router02 {
    function swapExactTokensForTokens(
        uint amountIn,
        uint amountOutMin,
        address[] calldata path,
        address to,
        uint deadline
    ) external returns (uint[] memory amounts);
}

/**
 * @title ArbitrageExecutor
 * @notice Executes 2-hop arbitrage opportunities using Aave V3 flash loans
 * @dev Uses flash loans to execute arbitrage with ZERO capital requirement
 *
 * How it works:
 * 1. Flash loan token A from Aave (e.g., borrow WETH)
 * 2. Swap A -> B on Pool 1 (e.g., WETH -> USDC on Uniswap)
 * 3. Swap B -> A on Pool 2 (e.g., USDC -> WETH on Sushiswap)
 * 4. Repay flash loan + 0.05% fee to Aave
 * 5. Keep the profit!
 *
 * Example profitable scenario:
 * - Borrow 1 WETH from Aave
 * - Swap 1 WETH -> 3010 USDC on Uniswap
 * - Swap 3010 USDC -> 1.01 WETH on Sushiswap
 * - Repay 1.0005 WETH to Aave (1 WETH + 0.05% fee)
 * - Profit: 0.0095 WETH (minus gas costs)
 */
contract ArbitrageExecutor is FlashLoanSimpleReceiverBase {
    address public immutable owner;

    // Events for monitoring
    event ArbitrageExecuted(
        address indexed asset,
        uint256 amount,
        uint256 profit,
        uint256 gasUsed
    );

    event ArbitrageFailed(
        address indexed asset,
        uint256 amount,
        string reason
    );

    /**
     * @notice Constructor
     * @param _addressProvider Aave V3 PoolAddressesProvider on Arbitrum
     *        Arbitrum address: 0xa97684ead0e402dC232d5A977953DF7ECBaB3CDb
     */
    constructor(address _addressProvider)
        FlashLoanSimpleReceiverBase(IPoolAddressesProvider(_addressProvider))
    {
        owner = msg.sender;
    }

    /**
     * @notice Execute arbitrage opportunity using flash loan
     * @param asset The asset to flash loan (e.g., WETH)
     * @param amount The amount to borrow
     * @param router1 The router address for first swap (e.g., Uniswap V2 router)
     * @param router2 The router address for second swap (e.g., Sushiswap router)
     * @param path1 The swap path for first trade [tokenA, tokenB]
     * @param path2 The swap path for second trade [tokenB, tokenA]
     * @param minProfit Minimum profit required (reverts if not met)
     */
    function executeArbitrage(
        address asset,
        uint256 amount,
        address router1,
        address router2,
        address[] calldata path1,
        address[] calldata path2,
        uint256 minProfit
    ) external onlyOwner {
        require(path1[0] == asset, "Path1 must start with borrowed asset");
        require(path2[path2.length - 1] == asset, "Path2 must end with borrowed asset");

        // Encode parameters for the flash loan callback
        bytes memory params = abi.encode(router1, router2, path1, path2, minProfit);

        // Request flash loan from Aave V3
        POOL.flashLoanSimple(
            address(this),  // Receiver address (this contract)
            asset,          // Asset to borrow
            amount,         // Amount to borrow
            params,         // Parameters for callback
            0               // Referral code (0 for none)
        );
    }

    /**
     * @notice Aave flash loan callback - executes the arbitrage
     * @dev This function is called by Aave Pool after transferring the flash loaned amount
     * @param asset The address of the flash-borrowed asset
     * @param amount The amount of the flash-borrowed asset
     * @param premium The fee of the flash-borrowed asset (0.05% on Aave V3)
     * @param initiator The address of the flashLoan initiator (must be this contract)
     * @param params The byte-encoded params passed when initiating the flashLoan
     * @return bool Returns true if execution was successful
     */
    function executeOperation(
        address asset,
        uint256 amount,
        uint256 premium,
        address initiator,
        bytes calldata params
    ) external override returns (bool) {
        // Ensure flash loan was initiated by this contract
        require(initiator == address(this), "Unauthorized initiator");
        require(msg.sender == address(POOL), "Caller must be Aave Pool");

        // Decode parameters
        (
            address router1,
            address router2,
            address[] memory path1,
            address[] memory path2,
            uint256 minProfit
        ) = abi.decode(params, (address, address, address[], address[], uint256));

        uint256 startGas = gasleft();

        // Step 1: Approve router1 to spend the borrowed tokens
        IERC20(asset).approve(router1, amount);

        // Step 2: Execute first swap (A -> B)
        uint256 intermediateAmount;
        try IUniswapV2Router02(router1).swapExactTokensForTokens(
            amount,
            0, // No slippage protection for now (add in production!)
            path1,
            address(this),
            block.timestamp + 300 // 5 minute deadline
        ) returns (uint[] memory amounts1) {
            intermediateAmount = amounts1[amounts1.length - 1];
        } catch Error(string memory reason) {
            emit ArbitrageFailed(asset, amount, reason);
            revert(string(abi.encodePacked("First swap failed: ", reason)));
        }

        // Step 3: Approve router2 to spend intermediate tokens
        address intermediateToken = path1[path1.length - 1];
        IERC20(intermediateToken).approve(router2, intermediateAmount);

        // Step 4: Execute second swap (B -> A)
        uint256 finalAmount;
        try IUniswapV2Router02(router2).swapExactTokensForTokens(
            intermediateAmount,
            amount + premium, // Must get back at least borrowed + fee
            path2,
            address(this),
            block.timestamp + 300
        ) returns (uint[] memory amounts2) {
            finalAmount = amounts2[amounts2.length - 1];
        } catch Error(string memory reason) {
            emit ArbitrageFailed(asset, amount, reason);
            revert(string(abi.encodePacked("Second swap failed: ", reason)));
        }

        // Step 5: Calculate profit
        uint256 amountOwed = amount + premium;
        require(finalAmount >= amountOwed, "Insufficient funds to repay loan");

        uint256 profit = finalAmount - amountOwed;
        require(profit >= minProfit, "Profit below minimum threshold");

        // Step 6: Approve Aave Pool to take back the borrowed amount + fee
        IERC20(asset).approve(address(POOL), amountOwed);

        // Step 7: Transfer profit to owner
        if (profit > 0) {
            IERC20(asset).transfer(owner, profit);
        }

        uint256 gasUsed = startGas - gasleft();
        emit ArbitrageExecuted(asset, amount, profit, gasUsed);

        // Return true to indicate successful execution
        return true;
    }

    /**
     * @notice Emergency withdraw function to recover stuck tokens
     * @param token The token address to withdraw
     */
    function emergencyWithdraw(address token) external onlyOwner {
        uint256 balance = IERC20(token).balanceOf(address(this));
        require(balance > 0, "No balance to withdraw");
        IERC20(token).transfer(owner, balance);
    }

    /**
     * @notice Check if an arbitrage opportunity is profitable before executing
     * @dev This is a view function to simulate profitability off-chain
     * @return profit The estimated profit in the borrowed asset
     * @return profitable Whether the arbitrage is profitable after fees
     */
    function estimateProfitability(
        address asset,
        uint256 amount,
        address router1,
        address router2,
        address[] calldata path1,
        address[] calldata path2
    ) external view returns (uint256 profit, bool profitable) {
        // This would require integration with Uniswap quoter contracts
        // For MVP, we'll calculate this off-chain before calling executeArbitrage
        revert("Use off-chain calculation");
    }

    modifier onlyOwner() {
        require(msg.sender == owner, "Only owner can call this");
        _;
    }

    // Allow contract to receive ETH
    receive() external payable {}
}