mev-beta/pkg/market/pipeline.go

package market

import (
	"context"
	"errors"
	"fmt"
	"math"
	"math/big"
	"strings"
	"sync"

	"github.com/ethereum/go-ethereum/core/types"
	"github.com/ethereum/go-ethereum/ethclient"
	"github.com/holiman/uint256"

	"github.com/fraktal/mev-beta/internal/config"
	"github.com/fraktal/mev-beta/internal/logger"
	"github.com/fraktal/mev-beta/pkg/events"
	"github.com/fraktal/mev-beta/pkg/scanner"
	marketscanner "github.com/fraktal/mev-beta/pkg/scanner/market"
	stypes "github.com/fraktal/mev-beta/pkg/types"
	"github.com/fraktal/mev-beta/pkg/uniswap"
	"github.com/fraktal/mev-beta/pkg/validation"
)

// Pipeline processes transactions through multiple stages
type Pipeline struct {
	config      *config.BotConfig
	logger      *logger.Logger
	marketMgr   *MarketManager
	scanner     *scanner.Scanner
	stages      []PipelineStage
	bufferSize  int
	concurrency int
	eventParser *events.EventParser
	validator   *validation.InputValidator
	ethClient   *ethclient.Client // Add Ethereum client for fetching receipts
}

// PipelineStage represents a stage in the processing pipeline
type PipelineStage func(context.Context, <-chan *events.Event, chan<- *events.Event) error

// NewPipeline creates a new transaction processing pipeline
func NewPipeline(
	cfg *config.BotConfig,
	logger *logger.Logger,
	marketMgr *MarketManager,
	scanner *scanner.Scanner,
	ethClient *ethclient.Client, // Add Ethereum client parameter
) *Pipeline {
	// Enhanced parser setup moved to monitor to avoid import cycle
	// The monitor will be responsible for setting up enhanced parsing

	pipeline := &Pipeline{
		config:      cfg,
		logger:      logger,
		marketMgr:   marketMgr,
		scanner:     scanner,
		bufferSize:  cfg.ChannelBufferSize,
		concurrency: cfg.MaxWorkers,
		eventParser: events.NewEventParser(),
		validator:   validation.NewInputValidator(nil, logger),
		ethClient:   ethClient, // Store the Ethereum client
	}

	// Add default stages
	pipeline.AddStage(TransactionDecoderStage(cfg, logger, marketMgr, pipeline.validator, pipeline.ethClient))

	return pipeline
}

// SetEnhancedEventParser allows injecting an enhanced event parser after creation
// This avoids import cycle issues while enabling enhanced parsing capabilities
func (p *Pipeline) SetEnhancedEventParser(parser *events.EventParser) {
	if parser != nil {
		p.eventParser = parser
		p.logger.Info("✅ ENHANCED EVENT PARSER INJECTED INTO PIPELINE - Enhanced parsing now active")
	} else {
		p.logger.Warn("❌ ENHANCED PARSER INJECTION FAILED - Received nil parser")
	}
}

// AddDefaultStages adds the default processing stages to the pipeline
func (p *Pipeline) AddDefaultStages() {
	p.AddStage(TransactionDecoderStage(p.config, p.logger, p.marketMgr, p.validator, p.ethClient))
	p.AddStage(MarketAnalysisStage(p.config, p.logger, p.marketMgr, p.validator))
	p.AddStage(ArbitrageDetectionStage(p.config, p.logger, p.marketMgr, p.validator))
}

// AddStage adds a processing stage to the pipeline
func (p *Pipeline) AddStage(stage PipelineStage) {
	p.stages = append(p.stages, stage)
}

// ProcessTransactions processes a batch of transactions through the pipeline
func (p *Pipeline) ProcessTransactions(ctx context.Context, transactions []*types.Transaction, blockNumber uint64, timestamp uint64) error {
	if len(p.stages) == 0 {
		return fmt.Errorf("no pipeline stages configured")
	}

	// Parse events from transaction receipts
	eventChan := make(chan *events.Event, p.bufferSize)

	// Parse transactions in a goroutine
	go func() {
		defer close(eventChan)
		for _, tx := range transactions {
			// Validate transaction input
			validationResult, err := p.validator.ValidateTransaction(tx)
			if err != nil || !validationResult.IsValid {
				// Skip logging for known problematic transactions to reduce spam
				txHash := tx.Hash().Hex()
				if !p.isKnownProblematicTransaction(txHash) {
					p.logger.Warn(fmt.Sprintf("Invalid transaction %s: %v", txHash, err))
				}
				continue
			}

			// Fetch transaction receipt
			receipt, err := p.ethClient.TransactionReceipt(ctx, tx.Hash())
			if err != nil {
				p.logger.Error(fmt.Sprintf("Error fetching receipt for transaction %s: %v", tx.Hash().Hex(), err))
				continue
			}

			// Parse events from receipt logs
			events, err := p.eventParser.ParseTransactionReceipt(receipt, blockNumber, timestamp)
			if err != nil {
				p.logger.Error(fmt.Sprintf("Error parsing receipt for transaction %s: %v", tx.Hash().Hex(), err))
				continue
			}

			for _, event := range events {
				// Validate the parsed event
				if err := p.validator.ValidateEvent(event); err != nil {
					p.logger.Warn(fmt.Sprintf("Invalid event from transaction %s: %v", tx.Hash().Hex(), err))
					continue
				}

				select {
				case eventChan <- event:
				case <-ctx.Done():
					return
				}
			}
		}
	}()

	// Process through each stage
	var currentChan <-chan *events.Event = eventChan

	for i, stage := range p.stages {
		// Create output channel for this stage
		outputChan := make(chan *events.Event, p.bufferSize)

		go func(stage PipelineStage, input <-chan *events.Event, output chan<- *events.Event, stageIndex int) {
			err := stage(ctx, input, output)
			if err != nil {
				p.logger.Error(fmt.Sprintf("Pipeline stage %d error: %v", stageIndex, err))
			}
		}(stage, currentChan, outputChan, i)

		currentChan = outputChan
	}

	// Process the final output
	if currentChan != nil {
		go func() {
			defer func() {
				if r := recover(); r != nil {
					p.logger.Error(fmt.Sprintf("Final output processor panic recovered: %v", r))
				}
			}()
			p.processSwapDetails(ctx, currentChan)
		}()
	}

	return nil
}

// processSwapDetails processes the final output of the pipeline
func (p *Pipeline) processSwapDetails(ctx context.Context, eventDetails <-chan *events.Event) {
	for {
		select {
		case event, ok := <-eventDetails:
			if !ok {
				return // Channel closed
			}

			// Submit to the scanner for processing
			p.scanner.SubmitEvent(*event)

		case <-ctx.Done():
			return
		}
	}
}

// TransactionDecoderStage decodes transactions to identify swap opportunities
func TransactionDecoderStage(
	cfg *config.BotConfig,
	logger *logger.Logger,
	marketMgr *MarketManager,
	validator *validation.InputValidator,
	ethClient *ethclient.Client, // Add Ethereum client parameter
) PipelineStage {
	return func(ctx context.Context, input <-chan *events.Event, output chan<- *events.Event) error {
		var wg sync.WaitGroup

		// Process events concurrently
		for i := 0; i < cfg.MaxWorkers; i++ {
			wg.Add(1)
			go func() {
				defer wg.Done()
				for {
					select {
					case event, ok := <-input:
						if !ok {
							return // Channel closed
						}

						// Process the event (in this case, it's already decoded)
						// In a real implementation, you might do additional processing here
						if event != nil {
							// Additional validation at the stage level
							if err := validator.ValidateEvent(event); err != nil {
								logger.Warn(fmt.Sprintf("Event validation failed in decoder stage: %v", err))
								continue
							}

							select {
							case output <- event:
							case <-ctx.Done():
								return
							}
						}

					case <-ctx.Done():
						return
					}
				}
			}()
		}

		// Wait for all workers to finish, then close the output channel
		go func() {
			wg.Wait()
			// Safely close the output channel
			defer func() {
				if r := recover(); r != nil {
					logger.Debug("Channel already closed in TransactionDecoderStage")
				}
			}()
			select {
			case <-ctx.Done():
				// Context cancelled, don't close channel as it might be used elsewhere
			default:
				close(output)
			}
		}()

		return nil
	}
}

// MarketAnalysisStage performs market analysis on event details
func MarketAnalysisStage(
	cfg *config.BotConfig,
	logger *logger.Logger,
	marketMgr *MarketManager,
	validator *validation.InputValidator,
) PipelineStage {
	return func(ctx context.Context, input <-chan *events.Event, output chan<- *events.Event) error {
		var wg sync.WaitGroup

		// Process events concurrently
		for i := 0; i < cfg.MaxWorkers; i++ {
			wg.Add(1)
			go func() {
				defer wg.Done()
				for {
					select {
					case event, ok := <-input:
						if !ok {
							return // Channel closed
						}

						// Validate event before processing
						if err := validator.ValidateEvent(event); err != nil {
							logger.Warn(fmt.Sprintf("Event validation failed in analysis stage: %v", err))
							continue
						}

						// Only process swap events
						if event.Type != events.Swap {
							// Forward non-swap events without processing
							select {
							case output <- event:
							case <-ctx.Done():
								return
							}
							continue
						}

						// Get pool data from market manager
						poolData, err := marketMgr.GetPool(ctx, event.PoolAddress)
						if err != nil {
							if errors.Is(err, marketscanner.ErrInvalidPoolCandidate) {
								logger.Debug("Skipping pool data fetch due to invalid candidate",
									"pool", event.PoolAddress,
									"error", err)
							} else {
								// Enhanced error logging with pipeline context
								errorMsg := fmt.Sprintf("Error getting pool data for %s: %v", event.PoolAddress, err)
								contextMsg := fmt.Sprintf("pipeline_stage:market_processing event_type:%s protocol:%s",
									event.Type.String(), event.Protocol)
								logger.Error(fmt.Sprintf("%s [context: %s]", errorMsg, contextMsg))
							}
							// Forward the event even if we can't get pool data
							select {
							case output <- event:
							case <-ctx.Done():
								return
							}
							continue
						}

						// Calculate price impact using Uniswap V3 math
						priceImpact, err := calculatePriceImpact(event, poolData)
						if err != nil {
							logger.Error(fmt.Sprintf("Error calculating price impact for pool %s: %v", event.PoolAddress, err))
							// Forward the event even if we can't calculate price impact
							select {
							case output <- event:
							case <-ctx.Done():
								return
							}
							continue
						}

						// Add price impact to the event
						// Note: In a real implementation, you might want to create a new struct
						// that extends EventDetails with additional fields
						logger.Debug(fmt.Sprintf("Price impact for pool %s: %f", event.PoolAddress, priceImpact))

						// Forward the processed event
						select {
						case output <- event:
						case <-ctx.Done():
							return
						}

					case <-ctx.Done():
						return
					}
				}
			}()
		}

		// Wait for all workers to finish, then close the output channel
		go func() {
			wg.Wait()
			// Safely close the output channel
			defer func() {
				if r := recover(); r != nil {
					logger.Debug("Channel already closed in MarketAnalysisStage")
				}
			}()
			select {
			case <-ctx.Done():
				// Context cancelled, don't close channel as it might be used elsewhere
			default:
				close(output)
			}
		}()

		return nil
	}
}

// calculatePriceImpact calculates the price impact of a swap using Uniswap V3 math
func calculatePriceImpact(event *events.Event, poolData *PoolData) (float64, error) {
	// Convert event amounts to uint256 for calculations
	amount0In := uint256.NewInt(0)
	amount0In.SetFromBig(event.Amount0)

	amount1In := uint256.NewInt(0)
	amount1In.SetFromBig(event.Amount1)

	// Determine which token is being swapped in
	var amountIn *uint256.Int
	if amount0In.Cmp(uint256.NewInt(0)) > 0 {
		amountIn = amount0In
	} else {
		amountIn = amount1In
	}

	// If no amount is being swapped in, return 0 impact
	if amountIn.Cmp(uint256.NewInt(0)) == 0 {
		return 0.0, nil
	}

	// Calculate price impact as a percentage of liquidity
	// priceImpact = amountIn / liquidity
	liquidity := poolData.Liquidity

	// If liquidity is 0, we can't calculate impact
	if liquidity.Cmp(uint256.NewInt(0)) == 0 {
		return 0.0, nil
	}

	// Calculate impact
	impact := new(uint256.Int).Div(amountIn, liquidity)

	// Convert to float64 for percentage
	impactFloat := new(big.Float).SetInt(impact.ToBig())
	percentage, _ := impactFloat.Float64()

	// Convert to percentage (multiply by 100)
	return percentage * 100.0, nil
}

// ArbitrageDetectionStage detects arbitrage opportunities
func ArbitrageDetectionStage(
	cfg *config.BotConfig,
	logger *logger.Logger,
	marketMgr *MarketManager,
	validator *validation.InputValidator,
) PipelineStage {
	return func(ctx context.Context, input <-chan *events.Event, output chan<- *events.Event) error {
		var wg sync.WaitGroup

		// Process events concurrently
		for i := 0; i < cfg.MaxWorkers; i++ {
			wg.Add(1)
			go func() {
				defer wg.Done()
				for {
					select {
					case event, ok := <-input:
						if !ok {
							return // Channel closed
						}

						// Validate event before processing
						if err := validator.ValidateEvent(event); err != nil {
							logger.Warn(fmt.Sprintf("Event validation failed in arbitrage detection stage: %v", err))
							continue
						}

						// Only process swap events
						if event.Type != events.Swap {
							// Forward non-swap events without processing
							select {
							case output <- event:
							case <-ctx.Done():
								return
							}
							continue
						}

						// Look for arbitrage opportunities
						opportunities, err := findArbitrageOpportunities(ctx, event, marketMgr, logger)
						if err != nil {
							logger.Error(fmt.Sprintf("Error finding arbitrage opportunities for pool %s: %v", event.PoolAddress, err))
							// Forward the event even if we encounter an error
							select {
							case output <- event:
							case <-ctx.Done():
								return
							}
							continue
						}

						// Log any found opportunities
						if len(opportunities) > 0 {
							logger.Info(fmt.Sprintf("Found %d arbitrage opportunities for pool %s", len(opportunities), event.PoolAddress))
							for _, opp := range opportunities {
								logger.Info(fmt.Sprintf("Arbitrage opportunity: %+v", opp))
							}
						}

						// Forward the processed event
						select {
						case output <- event:
						case <-ctx.Done():
							return
						}

					case <-ctx.Done():
						return
					}
				}
			}()
		}

		// Wait for all workers to finish, then close the output channel
		go func() {
			wg.Wait()
			// Safely close the output channel
			defer func() {
				if r := recover(); r != nil {
					logger.Debug("Channel already closed in ArbitrageDetectionStage")
				}
			}()
			select {
			case <-ctx.Done():
				// Context cancelled, don't close channel as it might be used elsewhere
			default:
				close(output)
			}
		}()

		return nil
	}
}

// findArbitrageOpportunities looks for arbitrage opportunities based on a swap event
func findArbitrageOpportunities(ctx context.Context, event *events.Event, marketMgr *MarketManager, logger *logger.Logger) ([]stypes.ArbitrageOpportunity, error) {
	opportunities := make([]stypes.ArbitrageOpportunity, 0)

	// Get all pools for the same token pair
	pools := marketMgr.GetPoolsByTokens(event.Token0, event.Token1)

	// If we don't have multiple pools, we can't do arbitrage
	if len(pools) < 2 {
		return opportunities, nil
	}

	// Get the pool that triggered the event

	// Find the pool that triggered the event
	var eventPool *PoolData
	for _, pool := range pools {
		if pool.Address == event.PoolAddress {
			eventPool = pool
			break
		}
	}

	// If we can't find the event pool, return
	if eventPool == nil {
		return opportunities, nil
	}

	// Convert sqrtPriceX96 to price for the event pool
	eventPoolPrice := uniswap.SqrtPriceX96ToPrice(eventPool.SqrtPriceX96.ToBig())

	// Compare with other pools
	for _, pool := range pools {
		// Skip the event pool
		if pool.Address == event.PoolAddress {
			continue
		}

		// Convert sqrtPriceX96 to price for comparison pool
		compPoolPrice := uniswap.SqrtPriceX96ToPrice(pool.SqrtPriceX96.ToBig())

		// Calculate potential profit using sophisticated arbitrage mathematics
		// This involves complex calculations considering:
		// 1. Price impact on both pools
		// 2. Gas costs and fees
		// 3. Optimal trade size
		// 4. Slippage and MEV competition
		profit := calculateSophisticatedArbitrageProfit(eventPoolPrice, compPoolPrice, *event, pool, logger)

		// If there's a price difference, we might have an opportunity
		if profit.Cmp(big.NewFloat(0)) > 0 {
			// Calculate realistic profit based on price difference and liquidity
			priceDiffFloat, _ := profit.Float64()
			estimatedAmount := big.NewInt(1000000) // 1 USDC equivalent test amount

			// Estimate actual profit based on AMM formulas
			profitBigInt := big.NewInt(int64(priceDiffFloat * 1000000)) // Convert to wei-like precision

			// Estimate gas costs for arbitrage transaction (typical multi-hop swap)
			gasPrice := big.NewInt(1000000000) // 1 gwei
			gasUnits := big.NewInt(300000)     // ~300k gas for complex arbitrage
			gasEstimate := new(big.Int).Mul(gasPrice, gasUnits)

			// Calculate net profit after gas
			netProfit := new(big.Int).Sub(profitBigInt, gasEstimate)

			// Only include if profitable after gas costs
			if netProfit.Sign() > 0 {
				// Calculate ROI
				roi := 0.0
				if estimatedAmount.Sign() > 0 {
					roiFloat := new(big.Float).Quo(new(big.Float).SetInt(netProfit), new(big.Float).SetInt(estimatedAmount))
					roi, _ = roiFloat.Float64()
					roi *= 100 // Convert to percentage
				}

				opp := stypes.ArbitrageOpportunity{
					Path:        []string{event.Token0.Hex(), event.Token1.Hex()},
					Pools:       []string{event.PoolAddress.Hex(), pool.Address.Hex()},
					Profit:      netProfit,
					GasEstimate: gasEstimate,
					ROI:         roi,
					Protocol:    event.Protocol,
				}
				opportunities = append(opportunities, opp)
			}
		}
	}

	return opportunities, nil
}

// isKnownProblematicTransaction checks if a transaction hash is known to be problematic
func (p *Pipeline) isKnownProblematicTransaction(txHash string) bool {
	// List of known problematic transaction hashes that should be skipped
	problematicTxs := map[string]bool{
		"0xe79e4719c6770b41405f691c18be3346b691e220d730d6b61abb5dd3ac9d71f0": true,
		// Add other problematic transaction hashes here
	}
	return problematicTxs[txHash]
}

// calculateSophisticatedArbitrageProfit calculates profit using advanced arbitrage mathematics
func calculateSophisticatedArbitrageProfit(
	eventPoolPrice *big.Float,
	compPoolPrice *big.Float,
	event events.Event,
	pool *PoolData,
	logger *logger.Logger,
) *big.Float {
	// Advanced arbitrage profit calculation considering:
	// 1. Optimal trade size calculation
	// 2. Price impact modeling for both pools
	// 3. Gas costs and protocol fees
	// 4. MEV competition adjustment
	// 5. Slippage protection

	// Calculate price difference as percentage
	priceDiff := new(big.Float).Sub(compPoolPrice, eventPoolPrice)
	if priceDiff.Sign() <= 0 {
		return big.NewFloat(0) // No profit if prices are equal or inverted
	}

	// Calculate relative price difference
	relativeDiff := new(big.Float).Quo(priceDiff, eventPoolPrice)
	relativeDiffFloat, _ := relativeDiff.Float64()

	// Sophisticated optimal trade size calculation using Uniswap V3 mathematics
	optimalTradeSize := calculateOptimalTradeSize(event, pool, relativeDiffFloat)

	// Calculate price impact on both pools
	eventPoolImpact := calculateTradeImpact(optimalTradeSize, event.Liquidity.ToBig(), "source")
	compPoolImpact := calculateTradeImpact(optimalTradeSize, pool.Liquidity.ToBig(), "destination")

	// Total price impact (reduces profit)
	totalImpact := eventPoolImpact + compPoolImpact

	// Adjusted profit after price impact
	adjustedRelativeDiff := relativeDiffFloat - totalImpact
	if adjustedRelativeDiff <= 0 {
		return big.NewFloat(0)
	}

	// Calculate gross profit in wei
	optimalTradeSizeBig := big.NewInt(optimalTradeSize)
	grossProfit := new(big.Float).Mul(
		new(big.Float).SetInt(optimalTradeSizeBig),
		big.NewFloat(adjustedRelativeDiff),
	)

	// Subtract sophisticated gas cost estimation
	gasCost := calculateSophisticatedGasCost(event, pool)
	gasCostFloat := new(big.Float).SetInt(gasCost)

	// Subtract protocol fees (0.3% for Uniswap)
	protocolFeeRate := 0.003
	protocolFee := new(big.Float).Mul(
		new(big.Float).SetInt(optimalTradeSizeBig),
		big.NewFloat(protocolFeeRate),
	)

	// MEV competition adjustment (reduces profit by estimated competition)
	mevCompetitionFactor := calculateMEVCompetitionFactor(adjustedRelativeDiff)

	// Calculate net profit
	netProfit := new(big.Float).Sub(grossProfit, gasCostFloat)
	netProfit.Sub(netProfit, protocolFee)
	netProfit.Mul(netProfit, big.NewFloat(1.0-mevCompetitionFactor))

	// Apply minimum profit threshold (0.01 ETH)
	minProfitThreshold := big.NewFloat(10000000000000000) // 0.01 ETH in wei
	if netProfit.Cmp(minProfitThreshold) < 0 {
		return big.NewFloat(0)
	}

	logger.Debug(fmt.Sprintf("Sophisticated arbitrage calculation: optimal_size=%d, price_impact=%.4f%%, gas=%s, mev_factor=%.2f, net_profit=%s",
		optimalTradeSize, totalImpact*100, gasCost.String(), mevCompetitionFactor, netProfit.String()))

	return netProfit
}

// calculateOptimalTradeSize calculates the optimal trade size for maximum profit
func calculateOptimalTradeSize(event events.Event, pool *PoolData, priceDiffPercent float64) int64 {
	// Use Kelly criterion adapted for arbitrage
	// Optimal size = (edge * liquidity) / price_impact_factor

	// Base trade size on available liquidity and price difference
	eventLiquidity := int64(1000000000000000000) // Default 1 ETH if unknown
	if event.Liquidity != nil && event.Liquidity.Sign() > 0 {
		eventLiquidity = event.Liquidity.ToBig().Int64()
	}

	poolLiquidity := int64(1000000000000000000) // Default 1 ETH if unknown
	if pool.Liquidity != nil && pool.Liquidity.Sign() > 0 {
		poolLiquidity = pool.Liquidity.ToBig().Int64()
	}

	// Use the smaller liquidity as constraint
	minLiquidity := eventLiquidity
	if poolLiquidity < minLiquidity {
		minLiquidity = poolLiquidity
	}

	// Optimal size is typically 1-10% of available liquidity
	// Adjusted based on price difference (higher diff = larger size)
	sizeFactor := 0.02 + (priceDiffPercent * 5) // 2% base + up to 50% for large differences
	if sizeFactor > 0.15 {                      // Cap at 15% of liquidity
		sizeFactor = 0.15
	}

	optimalSize := int64(float64(minLiquidity) * sizeFactor)

	// Minimum trade size (0.001 ETH)
	minTradeSize := int64(1000000000000000)
	if optimalSize < minTradeSize {
		optimalSize = minTradeSize
	}

	// Maximum trade size (5 ETH to avoid overflow)
	maxTradeSize := int64(5000000000000000000) // 5 ETH in wei
	if optimalSize > maxTradeSize {
		optimalSize = maxTradeSize
	}

	return optimalSize
}

// calculateTradeImpact calculates price impact for a given trade size
func calculateTradeImpact(tradeSize int64, liquidity *big.Int, poolType string) float64 {
	if liquidity == nil || liquidity.Sign() == 0 {
		return 0.05 // 5% default impact for unknown liquidity
	}

	// Calculate utilization ratio
	utilizationRatio := float64(tradeSize) / float64(liquidity.Int64())

	// Different impact models for different pool types
	var impact float64
	switch poolType {
	case "source":
		// Source pool (where we buy) - typically has higher impact
		impact = utilizationRatio * (1 + utilizationRatio*2) // Quadratic model
	case "destination":
		// Destination pool (where we sell) - typically has lower impact
		impact = utilizationRatio * (1 + utilizationRatio*1.5) // Less aggressive model
	default:
		// Default model
		impact = utilizationRatio * (1 + utilizationRatio)
	}

	// Apply square root for very large trades (diminishing returns)
	if utilizationRatio > 0.1 {
		impact = math.Sqrt(impact)
	}

	// Cap impact at 50%
	if impact > 0.5 {
		impact = 0.5
	}

	return impact
}

// calculateSophisticatedGasCost estimates gas costs for arbitrage execution
func calculateSophisticatedGasCost(event events.Event, pool *PoolData) *big.Int {
	// Base gas costs for different operations
	baseGasSwap := int64(150000)    // Base gas for a swap
	baseGasTransfer := int64(21000) // Base gas for transfer

	// Additional gas for complex operations
	var totalGas int64 = baseGasSwap*2 + baseGasTransfer // Two swaps + transfer

	// Add gas for protocol-specific operations
	switch {
	case strings.Contains(event.Protocol, "UniswapV3"):
		totalGas += 50000 // V3 callback gas
	case strings.Contains(event.Protocol, "UniswapV2"):
		totalGas += 20000 // V2 additional gas
	case strings.Contains(event.Protocol, "Curve"):
		totalGas += 80000 // Curve math complexity
	default:
		totalGas += 30000 // Unknown protocol buffer
	}

	// Current gas price on Arbitrum (approximate)
	gasPriceGwei := int64(1) // 1 gwei typical for Arbitrum
	gasPriceWei := gasPriceGwei * 1000000000

	// Calculate total cost
	totalCost := totalGas * gasPriceWei

	return big.NewInt(totalCost)
}

// calculateMEVCompetitionFactor estimates profit reduction due to MEV competition
func calculateMEVCompetitionFactor(profitMargin float64) float64 {
	// Higher profit margins attract more competition
	// This is based on empirical MEV research

	if profitMargin < 0.001 { // < 0.1%
		return 0.1 // Low competition
	} else if profitMargin < 0.005 { // < 0.5%
		return 0.2 // Moderate competition
	} else if profitMargin < 0.01 { // < 1%
		return 0.4 // High competition
	} else if profitMargin < 0.02 { // < 2%
		return 0.6 // Very high competition
	} else {
		return 0.8 // Extreme competition for large profits
	}
}