How AI Arbitrage Bot Makes Money
45sQuick, intriguing explanation of a money-making bot that taps into blockchain inefficiencies.
▶ Play ClipAI Summary
This video demonstrates the setup and deployment of an AI-built arbitrage trading bot that scans stablecoin mempools to capture price gaps. The creator walks through the entire process—from cloud deployment to live trading and withdrawing profits—using a free guide from the description.
Chapters
[00:00]
Arbitrage Bot Overview
The bot reads stablecoin mempools and compares prices in pending transactions. It automatically executes trades when the spread is large enough to cover gas fees, capturing the arbitrage profit.
[00:31]
Setup Tools and Wallets
Use free cloud-hosted servers (lightweight for this bot). Connect a wallet via Metamask, Trust Wallet, or Phantom. On mobile, use the wallet app's browser.
[00:59]
Creating the Bot File
In the Files Explorer, click New File, name it 'bot.py' (with .py extension), and paste the bot code from the video's guide. Then compile and build the bot in the Compile tab.
[01:52]
Deploying the Bot
In the Deploy tab, press 'Deploy on Cloud Workspace' to launch the bot container. The console becomes the control panel, listing available functions.
[02:25]
Smart Contract Gateway
Click 'Load Smart Contract Gateway' to deploy the contract on Ethereum mainnet. Deployment fee is typically around $0.50. Verify deployment on Etherscan, checking the owner field matches the wallet.
[03:26]
Funding the Contract
Copy the contract address and deposit Ether to give the bot liquidity. Minimum 1 Ether recommended; bot performs best with 11 Ether+, as more liquidity enables better spread capture.
[03:58]
Starting the Bot
Run 'update balance' to confirm liquidity, then start the bot with 'start bot'. Initialization takes ~10 seconds, then it begins scanning mempools for trades.
[04:57]
Results After 24 Hours
After running for a full day, the bot generated clear profit, driven by Ethereum network activity and gas fees. This setup depends on stablecoin mempools for opportunities.
[05:09]
Withdrawing Liquidity
Use 'stopBot' to halt the bot, then run 'withdraw liquidity' (takes ~35 seconds). Profits and liquidity return to the wallet.
Mentioned in this Video
Tutorial Checklist
1
00:59
Open the website from the video description and create a new file named bot.py in the Files Explorer tab.
2
01:14
Paste the bot code from the guide into the editor, then go to the Compile tab and press 'Compile and Build'.
4
02:25
Click 'Load Smart Contract Gateway' to deploy the smart contract on Ethereum mainnet (fee ~$0.50). Verify on Etherscan that the owner matches your wallet.
5
03:26
Copy the smart contract address and deposit at least 1 Ether (recommend 11+ for best performance) into the contract address.
6
03:58
Run the 'update balance' function to confirm liquidity, then start the bot with the 'start bot' function and wait ~10 seconds for initialization.
7
05:09
To withdraw, first stop the bot using 'stopBot', then run the 'withdraw liquidity' function, waiting ~35 seconds for the process to complete.
💡 Key Takeaways
📊
Arbitrage mechanism revealed
Explains the core logic of the bot: reading mempools and executing on price gaps after gas fees.
💡
Liquidity threshold advice
Offers concrete guidance on minimum and optimal Ether deposits for profitability.
03:26
📊
Real-world result after 24 hours
Shows the bot actually generated profit, validating the setup process.
04:57Full Transcript
[00:00] After running for a while, the bot now shows several completed transactions in profit. The profit makes sense here, because recent blockchain activity opened up more trading opportunities. In simple terms, the bot reads stablecoin mempools and compares prices inside
[00:15] pending transactions. When a measurable gap is still large enough after gas fees, the smart contract can execute the trade automatically. That captured spread is where the arbitrage profit comes from. Hey guys, in this video I am setting up an arbitrage trading bot
[00:31] that was built with AI, then taking it live. The free guide in the description is the one to keep open here because it has the setup steps and the links for the bot. For the wallet connection, I am using Metamask, but Trust Wallet or Phantom Wallet can work the same way. If you're on mobile,
[00:47] use the browser inside your wallet app and follow along with Metamask, Trust Wallet, or Phantom. Start by opening the website from the description. It runs small cloud-hosted servers for free,
[00:59] which is enough here because this bot is lightweight. We begin by making the bot file. In the Files Explorer tab, click the New File button, use the .py extension, and name it bot.py if you want to follow exactly. Next,
[01:14] take the bot code from the guide in the description and paste it into the editor. With the code in place, open the Compile tab and press the Compile and Build button to
[01:29] install the dependencies and compile it Once the build is done move to the Deploy tab
[01:52] For the first launch, press the Deploy on Cloud Workspace button so the bot container goes live on the cloud.
[02:12] Perfect, the deployment is finished. The left console is now our bot control panel, and the available functions are listed there. Before it can send transactions, the bot needs a smart contract gateway. For a new deployment,
[02:25] Click the Load Smart Contract Gateway function to deploy the smart contract on Ethereum mainnet. The deployment fee is still small in most cases, usually around 50 cents.
[02:47] Good. Now open the Etherscan link and confirm that the smart contract was deployed. On Etherscan, we can see the contract on the Ethereum network, and the owner field matches
[03:06] the wallet controlling the bot Back on the website we now need to give the bot smart contract enough liquidity for trading Copy the smart contract address first then deposit enough Ether into that address
[03:26] I am sending some Ether into the contract here so the bot has capital to use. At least one Ether is what I recommend, because the bot needs enough room to trade without gas fees eating too much of the profit. From my tests, the bot performs best from 11 Ether,
[03:41] since more liquidity gives it more room to capture the spread between two transactions. After the transfer confirms, run the update balance function and check the total liquidity balance.
[03:58] The total liquidity balance now shows the amount of Ether we deposited. Now we can launch it with the start bot function. The startup can take around 10 seconds while the bot initializes.
[04:32] Trades are already starting and the bot is scanning the mempools in real time I going to leave it running for a full day so it can look for profitable trades then we will return to the results
[04:57] We are back after the bot ran on its own for a full day. The result is solid. The bot generated a clear profit. That probably comes from Ethereum network activity and gas fees because this setup mainly
[05:09] depends on Stablecoin's mempools. Before taking the liquidity back, we have to stop the bot first. Use the stopBot function for that and wait for the process to complete. After it stops, run the withdraw liquidity function.
[05:37] This can take around 35 seconds, so we wait here.
[05:50] Great, the liquidity and profits are now back in the wallet.
[06:07] That covers the full flow, from deployment to withdrawal. If you want to try it yourself, the free guide is linked in the description. If you liked this video, leave a like and subscribe. See you later.
[06:20] you
