How do MEV bots detect profitable opportunities in real-time?

by aanaethan on May 28th, 2025 10:44 AM

[color=#000000][size=2][font=Arial, sans-serif]MEV bots[/font][/size][/color][color=#000000][size=2][font=Arial, sans-serif] uncover lucrative possibilities in real time by continually monitoring the mempool (the pool of unconfirmed transactions) and applying advanced algorithms to identify exploitable trends. This is how they do it.[/font][/size][/color]
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[li][color=#000000][size=2][font=Arial, sans-serif][color=#000000][size=2][font=Arial, sans-serif]Memory Pool Scanning:[/font][/size][/color][color=#000000][size=2][font=Arial, sans-serif] MEV bots monitor pending transactions before they are verified on-chain. This enables them to identify arbitrage possibilities, liquidations, and possible frontrunning scenarios.[/font][/size][/color][/font][/size][/color][/li]
[li][color=#000000][size=2][font=Arial, sans-serif][color=#000000][size=2][font=Arial, sans-serif]Simulations:[/font][/size][/color][color=#000000][size=2][font=Arial, sans-serif] Bots simulate the results of putting their transactions before, between, or after others (for example, in sandwich attacks) in order to determine prospective gains.[/font][/size][/color][/font][/size][/color][/li]
[li][color=#000000][size=2][font=Arial, sans-serif][color=#000000][size=2][font=Arial, sans-serif]DEX Price Monitoring: [/font][/size][/color][color=#000000][size=2][font=Arial, sans-serif]They monitor numerous decentralized exchanges for price disparities and latency, allowing for real-time arbitrage.[/font][/size][/color][/font][/size][/color][/li]
[li][color=#000000][size=2][font=Arial, sans-serif][color=#000000][size=2][font=Arial, sans-serif]Gas optimization: MEV Bots[/font][/size][/color][color=#000000][size=2][font=Arial, sans-serif] frequently bid higher gas costs or utilize private relays such as Flashbots to prioritize transactions without exposing them to the public mempool.[/font][/size][/color][/font][/size][/color][/li]
[li][color=#000000][size=2][font=Arial, sans-serif][color=#000000][size=2][font=Arial, sans-serif]Automated Decision Engines:[/font][/size][/color][color=#000000][size=2][font=Arial, sans-serif] Once a successful opportunity has been identified, bots execute trades in milliseconds using smart contract logic.[/font][/size][/color][/font][/size][/color][/li]
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