DEX Arbitrage Project

Atomic flash loan arbitrage on Polygon with Rust.

Project Structure

dexarb/
├── docs/                           # Strategy & implementation docs
│   ├── dex-arbitrage-complete-strategy.md
│   ├── phase1_implementation_plan.md
│   ├── phase1_execution_checklist.md
│   └── component_mapping_guide.md
├── repos/                          # Reference repos (gitignored)
│   ├── mev-template-rs/
│   ├── amms-rs/
│   ├── crypto-arbitrage-analyzer/
│   └── flashloan-rs/
├── src/
│   ├── rust-bot/                   # Phase 1 Rust arbitrage bot
│   │   ├── Cargo.toml              # Dependencies configured
│   │   ├── .env                    # Credentials (gitignored)
│   │   └── src/                    # Rust source code
│   └── contracts/                  # Solidity smart contracts (Phase 2)
└── README.md

Status: LIVE — Tri-DEX Atomic Arb (UniV3 + SushiV3 + QuickSwapV3)

• Repository initialized
• Documentation added
• Reference repos cloned
• Rust project scaffolded
• Environment configured (Alchemy RPC + wallet)
• Connection verified (~100ms latency)
• Pool syncing implementation (Day 2)
  • PoolStateManager with DashMap
  • PoolSyncer with Uniswap V2 ABIs
  • Quickswap + Sushiswap pools syncing
• Opportunity detection (Day 3)
  • OpportunityDetector with spread calculation
  • Profit estimation with gas costs
  • All calculations in Rust (microsecond latency)
• Trade execution (Day 4)
  • TradeExecutor with Uniswap V2 Router
  • DRY RUN mode by default (safe testing)
  • Slippage protection & gas price checks
• V3 Pool Integration (Day 5)
  • V3PoolSyncer for Uniswap V3 concentrated liquidity
  • 3 fee tiers: 0.05%, 0.30%, 1.00%
  • Unified detector comparing V2↔V2, V2↔V3, V3↔V3
  • Key profitable routes: 0.05%↔1.00% (~$10/trade)
• Tax Logging (IRS Compliance)
  • 34+ field TaxRecord for Form 8949
  • CSV + JSON dual logging
• Live trading validation
• Mainnet deployment

Quick Start

source ~/.cargo/env
cd src/rust-bot
cargo build --release && cargo test

# Start live bot
tmux new-session -d -s livebot "cd ~/bots/dexarb/src/rust-bot && RUST_BACKTRACE=1 RUST_LOG=dexarb_bot=info ./target/release/dexarb-bot > ~/bots/dexarb/data/livebot.log 2>&1"

# Check status
tail -20 ~/bots/dexarb/data/livebot.log

Strategy Overview

• Technology Stack: Rust (bot), Solidity (contracts), Polygon blockchain
• Mechanism: Flash loan arbitrage across DEXs (Uniswap, Sushiswap)
• Risk Profile: Low (atomic execution via ArbExecutorV2 — reverts on loss)
• DEXes: Uniswap V3, SushiSwap V3, QuickSwap V3 (Algebra Protocol)
• Pools: 17 active across 6 pairs (WETH, WMATIC, WBTC, USDT, DAI, LINK)
• Target: $5-20 profit/trade; WBTC UniV3↔QuickSwap best combo (60% profitable blocks)

See docs/dex-arbitrage-complete-strategy.md for full plan.

Adding New DEXes or Trading Pairs

CRITICAL: TVL Assessment Required

Before adding any new DEX or trading pair to the monitoring list, you MUST perform a TVL (Total Value Locked) assessment. Dead or illiquid pools generate false arbitrage opportunities that waste computation and produce misleading reports.

TVL Assessment Checklist

1. Check on-chain reserves for each pool address
2. Calculate TVL in USD using current token prices
3. Minimum threshold: $10,000 TVL for inclusion
4. Document findings in verification reports

How to Check TVL

# Use pool reserves from pool_state.json
# TVL = (reserve0 * price0) + (reserve1 * price1)
# Adjust for token decimals: USDC=6, WETH/WMATIC=18, WBTC=8

Currently Excluded Pools (< $1000 TVL)

Pool	DEX	TVL	Reason
UNI/USDC	Uniswap	$0.12	Dead pool
UNI/USDC	Sushiswap	$550	Low liquidity
LINK/USDC	Uniswap	$10.42	Dead pool
LINK/USDC	Sushiswap	$86	Low liquidity
LINK/USDC	Apeswap	$0.01	Dead pool
WBTC/USDC	Apeswap	$0.09	Dead pool
WBTC/USDC	Sushiswap	$501	Low liquidity
WMATIC/USDC	Apeswap	$462	Low liquidity
UNI/USDC	Apeswap	-	No pool exists

Exclusion List Location

Dead pools are excluded in src/rust-bot/src/bin/paper_trading.rs:

const EXCLUDED_POOLS: &[(&str, &str)] = &[
    ("Apeswap", "LINK/USDC"),
    ("Sushiswap", "LINK/USDC"),
    // ... etc
];

Lesson Learned (2026-01-28): Without TVL checks, dead V2 pools with $0.12 TVL were being compared to V3 pools, generating $38+ "opportunities" that were completely unfillable.

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Tax Logging (IRS Compliance)

Comprehensive tax logging module for US federal tax compliance. See docs/logging/tax_logging_implementation_plan.md.

Features

• TaxRecord: 34+ fields for IRS Form 8949 compliance
• CSV/JSON logging: Dual format for redundancy
• RP2 export: Compatible with RP2 tax software
• Price Oracle: Automatic USD prices from pool state

Quick Usage

# Export tax year to RP2 format
cargo run --bin tax-export -- --year 2026 --output rp2_2026.csv

# View tax summary
cargo run --bin tax-export -- --summary --year 2026

Files

data/tax/
├── trades_2026.csv    # Primary tax log
├── trades_2026.jsonl  # JSON backup
└── rp2_export_2026.csv # RP2 format for tax software

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Repository

• Remote: git@github.com:strongca22-cpu/dexarb.git
• Wallet: 0xa532eb528aE17eFC881FCe6894a08B5b70fF21e2