August 6, 2025 1:46 AM PDT
A
flash loan bot is a pre-built, customisable cryptocurrency trading platform created by one firm and rebranded or marketed by another. It enables enterprises to swiftly construct their own cryptocurrency exchange without starting from zero.
How the Flash Loan Arbitrage Bot Work
1. Price Scan: The bot continually checks prices across several DEXs (including Uniswap, SushiSwap, and Balancer).
2. Identifying opportunities:
flash loan bot recognises when an asset's price falls on one exchange and rises on another.
3. Flash Loan Execution: The bot obtains funds (such as ETH) using a flash loan.
4. Buy low and sell high:
Purchases the underpriced token on DEX A.
Sells it for a greater price on DEX B.
5.Loan repayment: In a single transaction, the profit is used to pay back the flash loan.
6. Profit Capture: If completed successfully, the bot retains the price difference as pure profit.
This post was edited by Aana ethan at August 6, 2025 2:06 AM PDT