PoolTogether v5 Hyperstructure - Arbitrage Bot, Calculate Profit

pt-v5-arb-5-calculate-profit.ts

import { ethers, BigNumber } from 'ethers';

const { profitable, selectedIndex } = await calculateProfit(wantedAmountsIn, wantedAmountsOut);

// Calculates the amount of profit the bot will make on this swap
// and if it's profitable or not
const calculateProfit = async (
  wantedAmountsIn: BigNumber[],
  wantedAmountsOut: BigNumber[],
): Promise<{ profitable: boolean; selectedIndex: number }> => {
  console.log('Gross profit = tokenOut - tokenIn');

  const grossProfitsUsd = [];
  for (let i = 0; i < wantedAmountsIn.length; i++) {
    const amountOut = wantedAmountsOut[i];
    const amountIn = wantedAmountsIn[i];

    const underlyingAssetTokenUsd =
      parseFloat(ethers.utils.formatUnits(amountOut, tokenOut.decimals)) *
      underlyingAssetToken.assetRateUsd;
    const tokenInUsd =
      parseFloat(ethers.utils.formatUnits(amountIn, tokenIn.decimals)) * tokenIn.assetRateUsd;

    const grossProfitUsd = underlyingAssetTokenUsd - tokenInUsd;

    console.log(`Index ${i}: $${grossProfitUsd} = $${underlyingAssetTokenUsd} - $${tokenInUsd}`);

    grossProfitsUsd.push(grossProfitUsd);
  }

  const getMaxGrossProfit = (grossProfitsUsd: number[]) => {
    const max = grossProfitsUsd.reduce((a, b) => Math.max(a, b), -Infinity);
    return { maxGrossProfit: max, selectedIndex: grossProfitsUsd.indexOf(max) };
  };

  const { selectedIndex, maxGrossProfit } = getMaxGrossProfit(grossProfitsUsd);
  console.log(`Selected Index ${selectedIndex} - $${maxGrossProfit}`);

  // Compare the profit with the gas costs to learn if transaction will be profitable
  const estimatedProfitUsd = maxGrossProfit - gasFeeUsd;
  const profitable = estimatedProfitUsd > 0;

  return { profitable, selectedIndex };
};