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@DeFiTracer

21 Tweets 8 reads Jun 19, 2024
I made $313,418 on $ZK using GPT-4.o...
instead of farming, I created bot to arbitrage it
I spent a month making it before $ZK launch...
but here's how to build same bot in 5 minutes 🧵👇
But before I start...
I've put a lot of effort and time into this research and share a lot of alpha totally FREE. If you don't mind, please like and retweet the first tweet and FOLLOW me - @DeFiTracer
This will help me provide you with even more ALPHA, thank you 🫶
✜ Any sharp price movement in the market allows you to make easy money through arbitrage.
✜ The $LUNA hack or the $ZK listing - all these events brought easy profit for arbitrage traders.
✜ This thread will help you fully understand arbitrage and start making money from it.
✜ I found a way to automate this process using Chat GPT 4.0!
✜ This will help you arbitrage any tokens with a few clicks using a bot.
✜ And anyone can create it in just a few minutes with the knowledge from this thread.
✜ Arbitrage is a way to profit from the price difference of the same trading pair on different markets and platforms.
✜ The percentage of profit from arbitrage is called the spread.
✜ Arbitrage itself can be divided into several types:
CEX to CEX
DEX to DEX
CEX to DEX & DEX to CEX
✜ Most often, arbitrage is most profitable during a series of events:
Token listing
Token migration
Various hacks
Sharp price fluctuations
And others
✜ During these periods, market makers simply don't have time to equalize prices, and you have the opportunity to profit from the price difference.
✜ Arbitrage is a fairly risky activity, but you can earn a profit in just a few minutes.
✜ Each type of arbitrage has its own nuances, so I recommend familiarizing yourself with each one:
CEX to CEX Arbitrage
✜ This type involves the price difference of coins on two different exchanges.
✜ It mostly works with exchanges that do not borrow liquidity from each other.
✜ Usually, a pump/dump happens on one of the exchanges, and prices do not equalize quickly.
CEX to CEX Pitfalls
✜ This type has quite a few nuances that you need to check and generally know about when arbitraging:
Closed deposit/withdrawal
Additional fees from CEX
Possibility of account blockage for suspicious activities
Preparation for Work
✜ For future work, I recommend preparing exchange accounts with completed KYC:
@binance
@okx
@Bybit_Official
@kucoincom
@MEXC_Official
@gate_io
✜ This list will ensure you a comfortable start in arbitrage.
Creating an AI Bot
To do this, go to ChatGPT and enter a prompt that will write the bot for you.
In the prompt, it's important to mention tracking percentages on different exchanges and automatic trading using APIs.
But where can you use this bot?
DEX to DEX Arbitrage
✜ Arbitrage that involves the price difference of a token in different blockchain networks.
✜ For this type of arbitrage, bridges are used to transfer assets between networks.
✜ For example, you send assets from Ethereum to Arbitrum and sell them there.
DEX to DEX Pitfalls
✜ For this type of arbitrage, you need to be an active WEB 3.0 user to avoid losing assets.
✜ There are also several problems that may arise:
- Additional transfer fees
- Lack of liquidity for buying/selling
- Preparation for DEX to DEX Arbitrage
✜ Among these networks, I would like to highlight:
Ethereum
Solana
Base
BSC
Matic
@MetaMask and @phantom are suitable for getting started.
CEX to DEX & DEX to CEX Arbitrage
✜ Arbitrage that involves the price difference on a decentralized platform and a CEX.
✜ This is the method that could have been recently used to arbitrage $ZK.
✜ This method is the most complex but often provides the largest spread.
CEX to DEX & DEX to CEX Pitfalls
✜ This type includes all the issues from the previous types of arbitrage.
✜ Their combination makes this type the most challenging for users.
✜ You can literally encounter problems at every step.
Risk Management
✜ Never invest money in arbitrage that you are not willing to lose.
✜ In such a risky niche, you can easily lose your deposit in one of the cycles.
✜ I personally recommend spending no more than 1-5% of your deposit on arbitrage, and this will bring you profit.
Personal Arbitrage Case
✜ Recently, at the $ZK listing, I managed to earn $313K by performing the simplest actions.
✜ Due to large deposit delays, many sold on DEX where there was not much liquidity.
✜ This led to a dump and a good entry point compared to prices on CEX.
✜ After the deposits started coming in, the price dropped, but there was still a good spread.
✜ With similar actions, my script made 17 cycles before the prices equalized.
In a few days, I'll start dropping my calls, scripts, and many more alpha in TG channel!
Make sure to subscribe, while it's still open for FREE!
Also I am running giveaway here rn, make sure to participate.
Link: t.me
If you loved this thread, don't forget to:
• Follow me @DeFiTracer for more exciting content!
• Like, retweet, and leave a comment 👾
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