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2021-09-10Automated High-Frequency Trading Bot
CASE STUDY
Technical Challenge
Arbitrage opportunities between decentralized AMMs and centralized orderbook exchanges exist for milliseconds. Building a profitable bot required minimizing RPC latency, mitigating mempool front-running (MEV), and managing gas spikes automatically.
Engineering Architecture
- Private RPC Mesh: Clustered WebSocket nodes running in Frankfurt, Singapore, and Tokyo close to exchange matching engines.
- Atomic Execution: Smart contracts bundling swap legs to ensure zero capital loss on reverted trades.
- Dynamic EIP-1559 Estimator: Real-time priority fee calculation based on mempool congestion.