Skipper

Example MEV searching bot for the Cosmos ecosystem, using Skip.

"""
||====================================================================||
||//$\\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\//$\\||
||(100)==================|  SKIP MONEY PRINTER  |================(100)||
||\\$//        ~         '------========--------'                \\$//||
||<< /        /$\              // ____ \\                         \ >>||
||>>|  12    //L\\            // ///..) \\         L38036133B   12 |<<||
||<<|        \\ //           || <||  >\  ||                        |>>||
||>>|         \$/            ||  $$ --/  ||        One Hundred     |<<||
||<<|      L38036133B        *\\  |\_/  //* series                 |>>||
||>>|  12                     *\\/___\_//*   1989                  |<<||
||<<\      Treasurer     ______/MEV BOTS\________     Secretary 12 />>||
||//$\                 ~| TO SKIP OR NOT TO SKIP |~               /$\\||
||(100)===================  BRRRRRRRRRRRRRRRRRR =================(100)||
||\\$//\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\\$//||
||====================================================================||
"""

Overview

This repository contains an example MEV bot that searches for and executes on profitable MEV opportunities throughout the Interchain, starting with Juno and Terra 2.

If you're new to MEV or searching, use this repo as an educational tool to help you learn the what and how of searching.
If you're already an experienced searcher, use this repo as an example on how to easily sign and send bundles to Skip on our supported chains.

For more searcher documentation, please see: https://skip-protocol.notion.site/Skip-Searcher-Documentation-0af486e8dccb4081bdb0451fe9538c99

For an overview of Skip, please see: https://woolen-background-b64.notion.site/Skip-What-it-is-How-it-Works-af39cd3eb5334920b41b16cf65665601

About our bots

Skipper is a Python-based bot for Cosmos that captures cyclic arbitrage opportunities across all major DEXs on Juno and Terra 2 by backrunning transactions that trade against particular pools. You can read more about JUNO, Loop DEX, and JunoSwap in our state of JUNO MEV report

Quick Start

This bot requires:

Python 3.10

Install Python 3.10

sudo apt update && sudo apt upgrade -y
sudo apt-get install software-properties-common
sudo add-apt-repository ppa:deadsnakes/ppa
sudo apt install python3.10 python3-pip python3-virtualenv python3.10-distutils

Check your Python 3.10 is functioning:

python3.10 --version

Clone the repository:

git clone https://github.com/skip-mev/skipper.git

Move into the directory:

cd skipper

Create a virtual environment

python3.10 -m venv venv

Activate virtual Environment, (venv) will show on left-hand side of shell

source venv/bin/activate

Once you have python 3.10 and are in the directory, install all the dependencies:

pip install -r requirements.txt

Edit files in envs/ to your liking (specifiying your mnemonic, profit as bid %, choosing node to query from).

The most important being your mnemonic, creating a new wallet is highly suggested for security, and for this wallet to only be used for this bot, as your mnemonic must be entered.

MNEMONIC = "<your mnemonic>"

Choose the specific .env file you want to target in main.py (change based on network run)

# Load environment variables
load_dotenv('envs/juno.env')
#load_dotenv('envs/terra.env')

Lastly, run the bot:

python3.10 main.py

To leave the virtual environment use command

deactivate

Run bot with docker

Install pre-requisites

sudo apt update -y && apt upgrade -y && apt autoremove -y
sudo apt install docker.io docker-compose -y

Edit files in envs/ to your liking (specifiying your mnemonic, profit as bid %, choosing node to query from).

The most important being your mnemonic, creating a new wallet is highly suggested for security, and for this wallet to only be used for this bot, as your mnemonic must be entered.

MNEMONIC = "<your mnemonic>"

Choose the specific .env file you want to target in main.py (change based on network run)

# Load environment variables
load_dotenv('envs/juno.env')
#load_dotenv('envs/terra.env')

Build the docker image

docker build -t mevbot .

Run the docker image

docker run -d --name mevbot mevbot:latest

Shell into container & check logs (if running on terra, log will be logs/terra.log)

docker exec -it mevbot cat logs/juno.log

Change env variables after image is built

docker exec -it mevbot /bin/sh

cd envs && nano juno.env -> edit to your liking

exit

docker restart mevbot

How the Bot Works

This example bot searches for 3-pool cyclic arbitrage opportunities on Juno mainnet. A cylic arb route is a collection of pools and corresponding swaps that result in receiving more of the same asset than was put in.

An example is as follows:

Swaps:
Pool 1: A -> B
Pool 2: B -> C
Pool 3: C -> A

Transfers: 100 Token A -> 20 Token B -> 150 Token C -> 120 Token A

In particular, this bot reads from a contracts.json file that has contract addresses of popular pools on JunoSwap and Loop Dex. In addition, for each pool, the file also has a list of 3-pool cyclic routes. Using this file, the high level steps are:

Continously query rpc node for current mempool txs (unconfirmed Txs)
Parse txs in mempool and look for swaps against JunoSwap pools
When a swap is found, grab the current reserve amounts for the pools we're tracking
Simulate the swap tx and update the reserves for the pools swapped against
Check if the swap created a cylic arb in any of our routes of interest
If an arb opportunity is created, find the optimal amount to put into the route
Check how profitable the cyclic arb would be after gas and bidding costs
If it's profitable after costs, then send a bundle to the Skip Auction

cfkelly18 / skipper