Definitive Guide: Types of Bots on Ethereum

The use of bots on Ethereum is widespread. The best known are MEV bots, who are used both by validators and by those who want to take advantage of the slippage of third-party transactions.

In this guide we are going to show you the types of bots available on the Ethereum network. If you want to know how to apply anti-bot technology to your token, you can visit our article about it.

MEV Bots ERC20

Maximal Extractable Value (MEV) bots exploit opportunities to maximize profits through various strategies, often raising concerns about the fairness and integrity of blockchain protocols. MEV refers to the maximum value that can be extracted from lock production in addition to the standard lock reward and gas fees by including, excluding and changing the order of transactions in a lock.

1.1. Front-Running Bots

Front-running bots detect pending transactions in the mempool (the pool of unconfirmed transactions) and place their transactions with a higher gas rate before those detected to benefit from subsequent price changes. This exploits the time delay between the submission of a transaction and its inclusion in a lock.

1.2. Arbitrage Bots

Arbitrage bots exploit price differences between various markets or exchanges to profit. They monitor multiple price sources and execute trades to buy at a low price on one platform and sell at a higher price on another, often executing these trades within seconds to capture the price discrepancy.

1.3. Liquidation Bots

Settlement bots identifies and acts on opportunities to liquidate undercollateralized positions on lending platforms such as Aave and Compound. These bots monitor collateralization ratios and quickly execute settlement transactions when a borrower's collateral falls below the required threshold, earning settlement fees.

Sandwich Bots

Sandwich bots perform sandwich attacks by placing a buy order immediately before a large pending trade (raising the price) and a sell order immediately after the trade (capitalizing on the higher price). This involves front-running the target transaction and then back-running to profit from the price movement.

2. CEX Bots ERC20

Centralized Exchange (CEX) bots manage interactions between centralized exchanges and the blockchain, ensuring smooth and efficient operations.

2.1. Hot Wallet Bots

The bots hot wallet handles frequent transactions and daily operations, maintaining the liquidity needed for immediate execution. They ensure that the hot wallets, which are connected to the Internet for fast access, have sufficient funds for withdrawals and user transactions.

2.2. Deposit Wallet Bots

bots deposit wallet manages user funds by facilitating deposits and withdrawals at centralized exchanges. They automate the process of recognizing incoming deposits, crediting user accounts and processing withdrawals, ensuring timely and accurate transactions.

2.3. Funding Wallet Bots

Funding wallet bots ensure that sufficient funds are available to cover transaction fees and other operational costs on the blockchain. They manage the transfer of funds between different wallets on the exchange to maintain optimal liquidity levels.

3. DEX Bots ERC20

Decentralized Exchange (DEX) bots engages in trading and liquidity provision on decentralized platforms, automating complex financial strategies.

3.1. Custom Trading Bots

Custom trading bots implements unique trading strategies, adapting to market conditions to maximize profits. These bots can execute limit orders, market orders and other advanced trading strategies based on predefined algorithms.

3.2. Liquidity Compounding Bots

Composite liquidity bots provides liquidity to pools on platforms such as Uniswap, SushiSwap and others. They reinvest profits (trading fees and rewards) automatically back into the liquidity pools, increasing returns over time.

4. NFT Bots ERC20

NFT's bots specializes in activities related to Non-Fungible Tokens (NFTs), automating trading and minting processes to maximize efficiency.

4.1. NFT Trading Bots

NFT trading bots automates the buying and selling of NFTs based on market trends and pricing models. They scan various NFT markets, such as OpenSea and Rarible, to identify profitable trading opportunities.

4.2. Minting Bots

Minting bots automates the process of creating new NFTs, often bypassing restrictions such as volume limits imposed by smart contracts. They can monitor NFT releases and mint new tokens quickly as soon as they become available.

5. Play to Earn Bots ERC20

Play to Earn (P2E) bots participate in blockchain-based games by automating actions to earn rewards and progress in the game.

5.1. Questing Bots

The questing bots automates the completion of in-game missions, earning rewards and advancing the player's progress. They can perform repetitive tasks more efficiently than human players, maximizing in-game gains.

5.2. Combat Bots

Combat bots participate in battles and other combat-related activities within the game, maximizing rewards earned through victories. These bots are programmed to execute optimal strategies during combat scenarios.

5.3. Crafting Bots

The crafting bots automates the creation of in-game items, which can be used or sold for profit. They simplify the crafting process, reducing the time and effort required by players.

Market Interaction Bots

Market interaction bots manages the buying and selling of in-game items in decentralized markets. They monitor market prices and execute trades to maximize profit margins.

6. General Purpose Bots ERC20

The general purpose bots performs a variety of routine tasks that are not specific to any particular category, ensuring the smooth operation of various protocols.

6.1. Protocol Update Bots

Protocol update bots automates the implementation of updates and changes to smart contracts and protocols. They ensure that the latest protocol versions are implemented without manual intervention, reducing the risk of human error.

6.2. Rollup Bots

Rollup bots facilitate layer 2 scaling solutions by batching transactions and deploying them on the maon Ethereum blockchain. They help improve transaction throughput and reduce gas rates by aggregating multiple transactions into a single batch.

6.3. Payment Bots

Payment bots automates the process of sending and receiving payments, ensuring timely and accurate transactions. They can handle recurring payments, microtransactions and other payment-related tasks efficiently.

6.4. Airdrop Collecting Bots

The airdrop collection bots automatically claims tokens distributed through airdrops, ensuring that all eligible tokens are collected. They monitor airdrop announcements and execute the necessary transactions to claim the tokens.

7. Non-Attributable Bots ERC20

The non-attributable bots exhibit automated behaviors with no clear purpose, making them difficult to categorize.

Miscellaneous Bots

Miscellaneous bots perform a variety of tasks that do not fit neatly into any of the other categories, often due to obfuscation or miscellaneous activities. They can be used for experimental purposes or niche functions within the blockchain ecosystem.

7.2. Unclassified Bots

Unclassified bots exhibit behaviors that are not well understood or documented, making their categorization challenging. These bots may operate in obscure or emerging areas of blockchain technology, with activities that have not yet been fully analyzed.

Final Considerations

Ethereum's blockchain leaves room for the operation of a large number of bot, many of them are used by validators and others are used in order to make profit from third party transactions or assets.

If you are thinking about setting up your Liquidity Pool, you should check out the posts on antibot from Ethereum that we have for you.

Source: Detecting Financial Bots on the Ethereum blockchain