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Solana Arbitrage Bot

A high-performance, production-ready arbitrage bot built for the Solana blockchain that monitors and executes profitable trading opportunities across multiple DEXs.

Overview

This arbitrage bot leverages Solana's high-performance blockchain to execute profitable trades by monitoring price differences between various Decentralized Exchanges (DEXs). The bot utilizes advanced algorithms for price discovery, route optimization, and transaction execution.

System Architecture

graph TD
    subgraph Price Discovery Layer
        PM[Price Monitor] --> |WebSocket| JP[Jupiter Price API]
        PM --> |WebSocket| RP[Raydium Price API]
        PM --> |WebSocket| OP[Orca Price API]
        PM --> PQ[Price Queue]
    end

    subgraph Analysis Layer
        PQ --> RF[Route Finder]
        RF --> |Profitable Routes| TP[Transaction Pool]
        RF --> |Route Validation| RV[Route Validator]
        RV --> |Validated Routes| TP
    end

    subgraph Execution Layer
        TP --> DC[DEX Client]
        DC --> |Execute| JD[Jupiter DEX]
        DC --> |Execute| RD[Raydium DEX]
        DC --> |Execute| OD[Orca DEX]
        DC --> |Status| TM[Transaction Monitor]
    end

    subgraph Monitoring Layer
        TM --> |Metrics| MT[Metrics Tracker]
        TM --> |Errors| EH[Error Handler]
        MT --> |Performance| Dashboard
        EH --> |Alerts| Dashboard
    end
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Core Components

1. Price Monitor (price_monitor.rs)

  • Real-time Price Tracking

    • WebSocket connections to multiple DEX APIs
    • Price update frequency: 100ms
    • Maintains order book depth
    • Tracks price movement patterns

  • Market Analysis

    • Volume-weighted average price (VWAP) calculation
    • Price impact estimation
    • Liquidity depth analysis
    • Historical price tracking

2. Route Finder (router_finder.rs)

  • Path Discovery

    struct Route {
    path: Vec<TokenPair>,
    expected_profit: f64,
    confidence_score: f64,
    execution_time_estimate: u64,
}

  • Route Types

    1. Direct Arbitrage 
      SOL -> USDC -> SOL (via different DEXs)
    2. Triangle Arbitrage 
      SOL -> USDC -> RAY -> SOL
    3. Multi-hop Arbitrage 
      SOL -> USDC -> RAY -> SRM -> SOL

3. DEX Client (dex_client.rs)

  • Transaction Building

    • Instruction composition
    • Account resolution
    • Signature management

  • DEX Integration

    trait DexClient {
    async fn create_swap_transaction(&self, route: Route) -> Result<Transaction>;
    async fn execute_swap(&self, transaction: Transaction) -> Result<Signature>;
    async fn get_swap_quote(&self, token_pair: TokenPair) -> Result<Quote>;
}

4. Transaction Pool (pool.rs)

  • Queue Management

    • Priority-based execution
    • Concurrent transaction handling
    • Rate limiting and backoff strategies

  • Transaction States

    enum TransactionState {
    Pending,
    Executing,
    Completed(Signature),
    Failed(Error),
    Timeout,
}

Trading Strategies

1. Flash Arbitrage

graph LR
    A[Buy Token on DEX A] -->|Instant| B[Sell Token on DEX B]
    B -->|Same Block| C[Profit in SOL]
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2. Liquidity Pool Arbitrage

graph LR
    A[Monitor LP Imbalance] -->|Detect Opportunity| B[Execute Swap]
    B -->|Rebalance Pool| C[Extract Profit]
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3. Cross-DEX Arbitrage

graph TD
    A[Price Discovery] -->|Find Spread| B[Calculate Profit]
    B -->|Execute if Profitable| C[Multi-DEX Swap]
    C -->|Complete Cycle| D[Secure Profit]
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Risk Management System

1. Transaction Safety

  • Maximum trade size limits
  • Slippage protection (default: 1%)
  • Transaction timeout (default: 2 blocks)
  • Minimum profit threshold

2. Error Handling

enum ArbitrageError {
    InsufficientLiquidity(TokenPair),
    SlippageExceeded { expected: f64, actual: f64 },
    TransactionTimeout(Signature),
    NetworkError(String),
    InsufficientFunds { required: u64, available: u64 },
}

3. Circuit Breakers

  • Maximum daily loss limit
  • Unusual price movement detection
  • Network congestion detection
  • Rapid transaction failure detection

Performance Optimization

1. Transaction Optimization

  • Compute unit optimization
  • Priority fee adjustment
  • Account reuse
  • Instruction compression

2. Memory Management

struct MemoryConfig {
    price_history_limit: usize,
    transaction_queue_size: usize,
    concurrent_requests: usize,
    websocket_buffer_size: usize,
}

Monitoring and Analytics

1. Performance Metrics

  • Profit/Loss tracking
  • Success rate
  • Average execution time
  • Gas efficiency

2. Real-time Monitoring

struct MetricsCollector {
    trades_executed: Counter,
    profit_secured: Gauge,
    active_routes: Gauge,
    execution_time: Histogram,
    error_rate: Counter,
}

Configuration

[network]
rpc_url = "https://api.mainnet-beta.solana.com"
ws_url = "wss://api.mainnet-beta.solana.com"

[trading]
min_profit_threshold = 0.001  # SOL
max_trade_size = 10.0        # SOL
slippage_tolerance = 0.01    # 1%
timeout_blocks = 2

[risk]
max_daily_loss = 1.0         # SOL
max_concurrent_trades = 5
circuit_breaker_threshold = 0.05

Security Considerations

  1. Private Key Management

    • Hardware wallet support
    • Key encryption at rest
    • Secure RPC connections

  2. Transaction Security

    • Double-check all calculations
    • Verify transaction simulation
    • Confirm account ownership

License

This project is licensed under the MIT License - see the LICENSE file for details.

Disclaimer

This software is for educational purposes only. Cryptocurrency trading carries significant risks. Use at your own discretion and risk.