Lets learn how to flash loan arbitrage on Binance Smart Chain. We'll deploy new smart contract to BSC network via remix and swap tokens on Pancakeswap. Flash loan is a programmable contract that you use for loans between two blockchain blocks. You can get feeless loans in between two block mining time. Flash loans only costs transaction gas. Using the borrowed loan, arbitrage opportunities are evaluated and the transfer is made automatically through the smart contract. You will make huge profits with volatile price between blocks. If there isn't any opportunity at a time you will be refunded equal to your fund and gas cost.
Step 1 - Have MetaMask wallet setup in chrome. (install here: https://chrome.google.com/webstore/detail/metamask/nkbihfbeogaeaoehlefnkodbefgpgknn?hl=en ) Step 2 - Add Binance Smart Chain Network to MetaMask ( Tutorial : https://medium.com/blind-boxes/how-to-guide-connecting-metamask-to-binance-smart-chain-7403c1f33170 ) Step 3 - Transfer BNB you want to use to the wallet using a regular wallet transfer. Step 4 - Go to https://remix.ethereum.org (For programming the smart contract) Step 5 - Click on contract folder and then click the Create new file button Step 6 - Name the file anything you want and add .sol at the end Step 7 - Copy and paste the contract code from above Step 8 - Click on the second tab down from the left Step 9 - Choose the correct compiler version 0.5.0 Step 10 - Click Compile Step 11 - Go to the third tab down on the left Step 12 - For environment, change it to Injectedweb3 and then confirm in metamask to connect Step 13 - Click on the arrow next to deploy and enter information for your brand new token and then click transact ( this token is decoy you can write any name and symbol here ) Step 14 - Once the contract is deployed, click to copy the contract code, open metamask and send your BNBs to contract. Step 15 - Once that's done, click on your new contract and click the red button (action/execute/flashloan).
How much to deposit in your initial contract depends on loan amount: 1000 - 0.15 BNB 2000 - 0.3 BNB 4000 - 0.6 BNB 8000 - 1.2 BNB
etc. (higher loan provide higher return)
➡️IMPORTANT NOTICE : This method is not working on testnets ! Why ? Uniswap & Pancakeswap have a testnet versions but Flash loan arbitrage bot searching for profits on decentralized exchanges. There isn't any arbitrage opportunity on testnets. So flash loan arbitrage bot can't work on testnets.
