Arbitrage Agent: AI-Powered DEX Arbitrage with On-Chain Memory

The arbitrage agent (arbitrage-agent/) is an autonomous AI agent that monitors WETH/USDC price differences across four DEX pools on Ethereum mainnet and Arbitrum, executes intra-network arbitrage via Balancer V2 flash loans, and mints an on-chain Mnemos memory snapshot after each successful trade.

Architecture

arbitrage-agent/
├── contracts/             Solidity flash loan executor (ArbitrageExecutor.sol)
├── src/
│   ├── tools/             AI-callable tools: prices, balance, gas, flash_loan
│   ├── agent/             Agentic loop + AI provider adapters (Claude, Gemini, OpenAI)
│   └── mnemos/            Mnemos integration: bundle builder + client wrapper
└── test/                  Unit and integration tests

Pools Monitored

Network	DEX	Pair
ETH Mainnet	Uniswap V2	WETH/USDC
ETH Mainnet	Uniswap V3 0.05%	WETH/USDC
Arbitrum	SushiSwap V2	WETH/USDC
Arbitrum	Uniswap V3 0.05%	WETH/USDC

Intra-network only. Cross-network arbitrage (ETH ↔ Arbitrum) requires a bridge and is out of scope.

How It Works

Each polling interval, the agent runs an agentic loop:

1. Fetches prices from all 4 pools in parallel
2. Checks wallet balances on both networks
3. If a spread looks profitable, estimates gas cost
4. Simulates the flash loan on-chain to verify profitability before submitting
5. If profitable, executes the flash loan: borrow USDC → swap → repay, atomically in one transaction

The ArbitrageExecutor contract (deployed separately) reverts the entire operation if profit < minProfit, so there is no risk of a partial execution.

AI Providers

The agent supports three AI providers. Set MODEL to select:

Prefix	Provider	Example
gemini-	Google Gemini (default)	gemini-2.0-flash
claude-	Anthropic Claude	claude-sonnet-4-6
gpt-, o1, o3, o4	OpenAI	gpt-4o

Setup

1. Install dependencies

cd arbitrage-agent
npm install

2. Deploy the ArbitrageExecutor contract

npm run build:contracts
forge create --rpc-url $ETH_RPC_URL --private-key $PRIVATE_KEY \
  contracts/src/ArbitrageExecutor.sol:ArbitrageExecutor \
  --constructor-args <BALANCER_VAULT> <WETH> <USDC> <UNIV2_ROUTER> <UNIV3_ROUTER> <UNIV3_QUOTER>

Set EXECUTOR_ETH and EXECUTOR_ARB in .env to the deployed addresses.

3. Configure environment

# Required
ETH_RPC_URL=<ethereum-rpc>
ARB_RPC_URL=<arbitrum-rpc>
PRIVATE_KEY=0x<wallet-private-key>
MAX_TRADE_USDC=100          # hard cap per swap (safety rail)

# AI provider — set the key for your chosen MODEL
GEMINI_API_KEY=<key>        # for gemini-*
ANTHROPIC_API_KEY=<key>     # for claude-*
OPENAI_API_KEY=<key>        # for gpt-*/o* models

# Optional
MODEL=gemini-2.0-flash       # default
POLL_INTERVAL_SECONDS=30     # minimum 10

# Mnemos — all 9 required to enable on-chain memory (omit any to disable)
OG_RPC_URL=https://evmrpc.0g.ai
OG_STORAGE_NODE=https://indexer-storage-turbo.0g.ai
OG_CHAIN_ID=16661
MNEMO_REGISTRY_ADDRESS=0x848F7000223dd2eBa5ac30b37d52EdA8D058E72E
MNEMO_MARKETPLACE_ADDRESS=0xFeb5Ac77Cd7746e2b35825dA800458D660D10209
MNEMO_BUY_PRICE=1000000000000000000
MNEMO_RENT_PRICE_PER_DAY=100000000000000000
MNEMO_FORK_PRICE=500000000000000000
MNEMO_ROYALTY_BPS=500

4. Run

npm start

Mnemos Integration

When all 9 MNEMO_* / OG_* env vars are set, the agent automatically mints a memory token on 0G Chain after each successful trade execution.

What the Memory Bundle Contains

Each snapshot packages the full context of the trade:

• Trade details: network, DEX, token pair, borrow amount, expected profit, gas cost, transaction hash, timestamp
• Prices at trade time: all 4 pool prices at the moment the decision was made
• AI reasoning: the model's full reasoning text explaining why it chose to execute
• Session stats: cumulative trade count, total gas cost in USD

Automatic Listing

After minting, the agent immediately lists the new token on the marketplace with the configured MNEMO_* pricing terms. This means every trade record is available for other agents to buy, rent, or fork on arrival.

Failure Handling

If snapshot or list fails, the error is logged and the agent continues trading. Memory snapshots never block execution.

If any of the 9 Mnemos vars are missing, Mnemos is silently disabled. The startup log shows Mnemos: disabled so you know immediately whether it's active.

Safety Rails

All safety rails are enforced by the runtime — the AI model cannot override them:

Rail	Effect
MAX_TRADE_USDC	Hard cap on borrowAmount — rejected with an error returned to the model
Token whitelist	Only WETH and USDC addresses are permitted in flash loan calls
minProfit floor	Raised to at least 1.5× estimated gas cost before submitting
Sequential execution	Only one execute_flash_loan_arbitrage call per iteration
Simulate-before-write	simulateContract on executeArbitrage catches reverts before spending gas
Atomic execution	The ArbitrageExecutor contract reverts if profit < minProfit

Testing

# Unit tests — no RPC required
npm run test:unit

# Integration tests — requires ETH_RPC_URL + ARB_RPC_URL
ETH_RPC_URL=<url> ARB_RPC_URL=<url> npm run test:integration