no_five/docs/MEV_BOT.md

# MEV Bot Documentation

## Overview

The DBIS MEV Bot is a TypeScript application that monitors positions and executes profitable atomic amortization cycles, arbitrage opportunities, and protective deleveraging.

## Architecture

### Core Components

1. **Bot Engine** (`bot.ts`)
   - Main event loop
   - Strategy coordination
   - Opportunity detection

2. **Strategies**
   - **Amortization**: Executes amortization cycles
   - **Arbitrage**: Finds arbitrage opportunities
   - **Deleverage**: Protects positions with low HF

3. **Utilities**
   - **Invariant Checker**: Verifies invariants before execution
   - **Position Calculator**: Calculates position metrics
   - **Bundle Builder**: Builds Flashbots bundles

4. **Providers**
   - **Flash Router Client**: Interacts with FlashLoanRouter
   - **Aave Client**: Reads Aave position data
   - **Uniswap Client**: Executes swaps

## Setup

### 1. Install Dependencies

```bash
cd mev-bot
npm install
```

### 2. Configure Environment

Create `.env` in `mev-bot/`:

```env
RPC_URL=https://eth-mainnet.g.alchemy.com/v2/YOUR_KEY
PRIVATE_KEY=your_bot_private_key
FLASH_ROUTER_ADDRESS=0x...
VAULT_ADDRESS=0x...
KERNEL_ADDRESS=0x...
AAVE_POOL_ADDRESS=0x...
UNISWAP_ROUTER_ADDRESS=0x...
```

### 3. Build

```bash
npm run build
```

### 4. Run

```bash
npm start
```

## Strategies

### Amortization Strategy

**Purpose**: Execute profitable amortization cycles

**Detection**:
1. Check current position
2. Calculate potential improvement
3. Estimate gas costs
4. Determine profitability

**Execution**:
1. Verify invariants
2. Build transaction
3. Submit via Flashbots (if enabled)
4. Monitor execution

### Arbitrage Strategy

**Purpose**: Find arbitrage opportunities

**Detection**:
1. Compare prices across DEXs
2. Calculate potential profit
3. Account for gas and fees
4. Determine if profitable

**Execution**:
1. Execute arbitrage trade
2. Capture profit
3. Update position

### Deleverage Strategy

**Purpose**: Protect position when HF is low

**Trigger**: Health factor < 1.10

**Action**:
1. Reduce leverage
2. Improve health factor
3. Prevent liquidation risk

## Bundle Building

### Flashbots Integration

For private transaction submission:

```typescript
import { FlashbotsBundleProvider } from "@flashbots/ethers-provider-bundle";

const bundle = await bundleBuilder.buildBundle(transactions);
await flashbotsProvider.sendBundle(bundle, targetBlockNumber);
```

### Benefits
- No front-running
- Atomic execution
- Priority inclusion

## Monitoring

### Position Monitoring

```typescript
const position = await positionCalculator.getPosition();
console.log(`HF: ${position.healthFactor}`);
console.log(`LTV: ${position.ltv}`);
console.log(`Collateral: ${position.collateral}`);
console.log(`Debt: ${position.debt}`);
```

### Alert Conditions

- Health factor < 1.10
- Position at risk
- Policy denial
- Transaction failure
- Bot downtime

## Multi-Region Deployment

Deploy in multiple regions for redundancy:
- US East
- EU
- Singapore

Use leader election or load balancing.

## Configuration

### Poll Interval
Adjust how often bot checks for opportunities:
```typescript
private pollInterval = 5000; // 5 seconds
```

### Profitability Thresholds
Minimum profit to execute:
```typescript
const minProfit = ethers.parseEther("0.01"); // 0.01 ETH
```

### Gas Price Management
Set max gas price:
```typescript
const maxGasPrice = ethers.parseUnits("100", "gwei");
```

## Error Handling

### Retry Logic
```typescript
async executeWithRetry(operation, maxRetries = 3) {
    for (let i = 0; i < maxRetries; i++) {
        try {
            return await operation();
        } catch (error) {
            if (i === maxRetries - 1) throw error;
            await sleep(1000 * (i + 1)); // Exponential backoff
        }
    }
}
```

### Failure Notifications
Send alerts on:
- Transaction failures
- Invariant violations
- Policy denials
- Bot crashes

## Logging

Use Winston for structured logging:

```typescript
import winston from "winston";

const logger = winston.createLogger({
    level: "info",
    format: winston.format.json(),
    transports: [
        new winston.transports.File({ filename: "error.log", level: "error" }),
        new winston.transports.File({ filename: "combined.log" })
    ]
});
```

## Performance Optimization

1. **Batch Operations**: Group multiple checks
2. **Caching**: Cache position data
3. **Async Processing**: Parallel opportunity detection
4. **Connection Pooling**: Reuse RPC connections

## Security

1. **Private Key Management**: Use secure key storage
2. **Access Control**: Limit bot permissions
3. **Rate Limiting**: Prevent spam
4. **Monitoring**: Track all bot actions

## Deployment

### Docker

```dockerfile
FROM node:18
WORKDIR /app
COPY package*.json ./
RUN npm install
COPY . .
CMD ["npm", "start"]
```

### Systemd Service

```ini
[Unit]
Description=DBIS MEV Bot
After=network.target

[Service]
Type=simple
User=dbis
WorkingDirectory=/opt/dbis-mev-bot
ExecStart=/usr/bin/npm start
Restart=always

[Install]
WantedBy=multi-user.target
```

## Metrics

Track:
- Opportunities detected
- Cycles executed
- Profit generated
- Gas costs
- Success rate
- Average HF improvement