sMEV

Warning: this code will not make you money. But by studying it you might learn how to capture MEV.

This repo contains a searcher developed to take advantage of a 1 off MEV opportunity created by the Synthetix team deprecating their ETH collateral trial program. As a result of this there were many loans that would be liquidatable after the governance proposal was executed. Taking advantage of this required a bot that could backrun the governance proposal execution transaction from the mempool as well as monitoring and execution infrastructure - all of which is contained here.

An accompanying blog post talking through the process of writing this bot and its strategy can be found here. This is highly recommended to understand the thought process and design decisions behind this repo.

Structure

The repo is structured as follows

• contracts: contains the oracle contract (sAssetsOracle.sol) used to improve data collection and the execution contract(dYdXLiquidator.sol) used to liquidate loans
• data: structured data from monitoring scripts, most importantly information on the optimal liquidation strategy
• execute: actual execution scripts, best to start with index.js here. Also contains the sETH and sUSD monitoring scripts.
• hardhat: my test environment. This is messy and I didn't clean my many files up. Note that you need to add your own rpc endpoint (Alchemy is good here) in hardhat.config.js.

To run index.js you must have an .env file with the right variables, but again, this code was for a 1 off opportunity and should be used exclusively for learning purposes.