# 🧱⛓ Stateful Blockchains, MEV, and Flashbots

* This repository contains my notes, scripts, code through my journey into stateful blockchains and miner profit.


* **[Flashbots](https://github.com/flashbots/pm)** maintains a proof-of-concept communication channel for users to send their Ethereum transactions directly to miners.

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## Episodes

* [Chapter I: `geth` and running an Ethereum node](https://github.com/bt3gl-labs/Getting-Started-MEVs-and-Flashbots/blob/main/chapter_I.md)
* [Chapter II: The Mempool and MEV](https://github.com/bt3gl-labs/Getting-Started-MEVs-and-Flashbots/blob/main/chapter_II.md)
* [Chapter III: Flashbots](https://github.com/bt3gl-labs/Getting-Started-MEVs-and-Flashbots/blob/main/chapter_III.md)
* [Chapter IV: Flashbots bundle](https://github.com/bt3gl-labs/Stateful-Blockchains-and-Flashbots/blob/main/chapter_IV.md)

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## Code

* [PoCs having `geth` in Docker and K8s](https://github.com/bt3gl-labs/Stateful-Blockchains-and-Flashbots/tree/main/geth_and_k8s)


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## Further references


- [Flashbots PM](https://github.com/flashbots/pm)
- [Etherscan data on flashbots](https://etherscan.io/blocks/label/flashbots)
- [MEV Dashboard by Flashbots](https://explore.flashbots.net/).
- [Sandwiched?](https://sandwiched.wtf/)

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## Terminology

* **Mempool**: the set of pending, unconfirmed transactions in the EVM.
* **MEV**: Maximal (or miner) Extractable Value
* **Frontrunning**: also known as Priority Gas Auctions (PGAs), when a miner steals a profitable opportunity (such as arbitrage) for themselves by sending the same transaction with a higher gas price. For example, a transaction A is broadcasted with a higher gas price than an already pending transaction B so that A gets mined before B (eg. to snatch a Uniswap price arbitrage trade to rebalance a pool).
* **Backrunning**: a transaction A is broadcasted with a slightly lower gas price than already pending transaction B so that A gets mined right after B in the same block. (eg. to execute a DyDx liquidation after a price oracle update that triggers a DyDx loan to go under the required collateralization ratio).
* **Sandwiching**: profiting off slippage in liquidity pools by buying and selling before and after large transactions posted in the mempool.
* **DEX arbitrage**: If two DEXes are offering a token at two different prices, one can buy the token on the lower-priced DEX and sell it on the higher-priced DEX.
* **Liquidations**: if the value of a borrowed asset exceeds the collateral, anyone can liquidate the collateral and collect the liquidation fee for themselves.