- author: Solidity Dev 2.0
How to Make Easy Passive Income on the Ethereum Blockchain
In this tutorial, we will learn how to make easy passive income on the Ethereum blockchain using basic Solidity code. Solidity is the native coding language of Ethereum, and we will be utilizing it to create an MEV Arbitrage smart contract. This contract will allow us to leverage arbitrage and LP token pairings within UniSwap to generate passive income with minimal user input. If you're new to coding, don't worry! This tutorial will guide you step-by-step through the process.
Before we begin, make sure you have the following prerequisites:
- Install the MetaMask browser extension and connect it to the Ethereum mainnet.
- Go to remix ide.org and create a new contract under the contracts folder. We'll name it
Deploying the Ethereum Trading Bot
- Paste the Source Code: In the description of this tutorial, you will find a link to the source code of our slippage bot. Copy the code and paste it into the
// Insert the slippage bot source code here
Compile the Contract: Click on the "Compile bot.sol" button in Remix IDE. Ensure that the compiler version is set to 0.6.6 and the language is set to Solidity with EVM version as default.
Deploy the Contract: Go to the "Deploy and Run Transactions" section in Remix. Select the injected provider as the environment. Deploying the contract on the blockchain requires paying gas fees, which are commissions on the Ethereum network for smart contract deployment. Set the gas fee to high for faster transaction processing.
Funding the Contract
Now that our smart contract is deployed, we need to fund it with some Ethereum to snipe liquidity pools.
Copy the Smart Contract Address: Copy the smart contract address from Remix IDE.
Open MetaMask: Open your MetaMask wallet and ensure that the correct Ethereum address is selected. We will use this address to deposit Ethereum into the smart contract.
Send Ethereum to the Smart Contract: Transfer the desired amount of Ethereum to the smart contract address from MetaMask. The more Ethereum you deposit, the larger transactions you can sandwich and the more profit you can accumulate over time.
Running the Bot and Withdrawing Profits
Start the Bot: Click on the "Start" button in Remix IDE to enable the bot to start sniffing the mempool. This will help the bot find different liquidity pairs to sandwich transactions.
Monitor Profits: After running the bot for some time, you can check the profits made. The bot operates by taking advantage of slippage differences in the transaction. You can expect the profit to fluctuate based on the market conditions.
Withdraw Profits: When you want to exit the liquidity pool and collect your profits, click on the "Withdraw" button. This will transfer the total Ethereum, including the profit, back to your wallet.
By utilizing the MEV Arbitrage smart contract created using Solidity code, you can generate easy passive income on the Ethereum blockchain. With minimal user input, you can take advantage of arbitrage opportunities and LP token pairings within UniSwap. Remember, the profitability may vary week to week, but this method has the potential to yield significant returns. If you have any questions, feel free to reach out via Telegram. Enjoy earning passive income on the Ethereum blockchain!