SpiceTrade: DeFi Arbitrage Bot

SpiceTrade is a DeFi arbitrage bot that leverages real-time price discrepancies across decentralized exchanges (DEXes) to generate profits. Inspired by the economics of Dune and the underdog spirit of Star Wars, the bot navigates the volatile DeFi landscape to find and exploit arbitrage opportunities.

SpiceTrade draws inspiration from the crucial resource, spice, in Dune, mirroring the critical opportunities in DeFi arbitrage, and the rebels of Star Wars capitalizing on weaknesses in the Empire. The concept is a conversational interface bot that monitors multiple DEXes (e.g., Uniswap, Sushiswap, PancakeSwap) for price differences of specific tokens. The user defines parameters like initial capital, risk tolerance, and desired tokens. The bot then uses a simple algorithm, possibly starting with a naive implementation, to identify arbitrage opportunities (e.g., Token A is cheaper on Uniswap and more expensive on Sushiswap). It will use the conversational interface (e.g., Telegram bot or Discord bot) to notify the user of opportunities, displaying the potential profit, required transaction costs (gas fees), and a confidence score based on historical data. The user then approves the trade through the interface, and the bot executes the trade using a decentralized exchange API. The bot can start with one or two token pairs to keep costs low. The earning potential comes from the percentage taken as commission from the successful trades. The 'conversational interface scraper project' aspect is integrated through the notification system and user approval mechanism. The bot starts with a basic implementation, and improvements can be added later such as implementing more sophisticated arbitrage algorithms (e.g., triangular arbitrage), incorporating more DEXes and tokens, and developing a more user-friendly interface.

Project Details

Area: FinTech Solutions Method: Conversational Interfaces Inspiration (Book): Dune - Frank Herbert Inspiration (Film): Star Wars: Episode IV – A New Hope (1977) - George Lucas