Complete Guide: Types of Bots on Ethereum

Bots are widely used on Ethereum. The best-known ones are MEV bots, used both by validators and by actors looking to exploit other users’ transaction slippage.

In this guide, we’ll break down the main types of bots running on the Ethereum network. If you want to learn how to apply anti-bot technology to your token, you can read our article on the topic.

1. ERC20 MEV Bots

Maximal Extractable Value (MEV) bots exploit opportunities to maximize profit through different strategies, often raising concerns around fairness and the integrity of blockchain protocols. MEV refers to the maximum value that can be extracted from block production beyond the standard block reward and gas fees by including, excluding, or reordering transactions within a block.

1.1. Front-Running Bots

Front-running bots scan pending transactions in the mempool (the pool of unconfirmed transactions) and place their own transactions ahead of them with higher gas fees, aiming to profit from the price moves that follow. They exploit the time gap between when a transaction is submitted and when it gets included in a block.

1.2. Arbitrage Trading Bots

Arbitrage bots profit from price differences across markets or exchanges. They track multiple price feeds and execute trades that buy low on one platform and sell higher on another, often completing the whole sequence in seconds to capture the spread.

1.3. Liquidation Bots

Liquidation bots find and act on opportunities to liquidate undercollateralized positions on lending platforms like Aave and Compound. They monitor collateral ratios and quickly execute liquidation transactions when a borrower’s collateral falls below the required threshold, earning from liquidation fees.

1.4. Sandwich Bots

Sandwich bots run sandwich attacks by placing a buy order right before a large pending transaction (pushing the price up) and a sell order right after that transaction (capturing the higher price). In practice, they front-run the target transaction and then back-run it to profit from the price movement.

2. CEX Bots ERC20

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

2.1. Hot Wallet Bots

Hot wallet bots handle frequent transactions and day-to-day operations, maintaining the liquidity needed for immediate execution. They make sure hot wallets, which stay connected to the internet for fast access, have enough funds for user withdrawals and activity.

2.2. Deposit Wallet Bots

Deposit wallet bots manage user funds by handling deposits and withdrawals on centralized exchanges. They automate deposit detection, user account crediting, and withdrawal processing, keeping transactions timely and accurate.

2.3. Funding Wallet Bots

Funding wallet bots make sure enough funds are available to cover transaction fees and other on-chain operating costs. They manage fund transfers between the exchange’s wallets to keep liquidity at the right levels.

3. DEX Bots ERC20

Decentralized Exchange (DEX) bots handle trading and liquidity provisioning on decentralized platforms, automating complex financial strategies.

3.1. Tailored Trading Bots

Custom trading bots run unique trading strategies, adapting to market conditions to maximize returns. They can place limit orders, market orders, and other advanced trading strategies based on predefined algorithms.

3.2. Liquidity Auto-Compounding Bots

Liquidity compounding bots provide liquidity to pools on platforms like Uniswap, SushiSwap, and others. They automatically reinvest earnings (trading fees and rewards) back into the liquidity pools, helping returns grow over time.

4. NFT Bots ERC20

NFT bots focus on Non-Fungible Token (NFT) activity, automating trading and minting workflows to make execution more efficient.

4.1. NFT Trading Bots

NFT trading bots automate NFT buying and selling based on market trends and pricing models. They scan multiple NFT marketplaces, including OpenSea and Rarible, to spot profitable trading opportunities.

4.2. NFT Mint Bots

Minting bots automate the creation of new NFTs, often bypassing restrictions such as volume limits set by smart contracts. They can monitor NFT drops and mint new tokens the moment they become available.

5. Play-to-Earn Bots ERC20

Play-to-Earn (P2E) bots operate inside blockchain-based games, automating actions to earn rewards and move through the game faster.

5.1. Quest Bots

Quest bots automate in-game missions, earning rewards and pushing player progression forward. They handle repetitive tasks more efficiently than human players, helping maximize in-game earnings.

5.2. Battle Bots

Combat bots take part in battles and other in-game combat activities, maximizing rewards earned through wins. They are programmed to run optimal strategies during combat scenarios.

5.3. Crafting Bots

Crafting bots automate the creation of in-game items, which players can either use or sell for profit. They streamline the crafting process and cut down the time and effort required from players.

5.4. Market Interaction Bots

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

6. General-Purpose Bots ERC20

General-purpose bots handle a range of routine tasks that do not fit into one specific category, helping different protocols run smoothly.

6.1. Protocol Update Bots

Protocol upgrade bots automate the rollout of updates and changes to smart contracts and protocols. They make sure the latest protocol versions go live without manual work, reducing the risk of human error.

6.2. Rollup Bots

Rollup bots support Layer 2 scaling by bundling transactions and posting them to the main Ethereum blockchain. They help increase transaction throughput and lower gas fees by combining multiple transactions into a single batch.

6.3. Payment Bots

Payment bots automate sending and receiving payments, keeping transactions timely and accurate. They can handle recurring payments, microtransactions, and other payment-related tasks efficiently.

6.4. Airdrop Collecting Bots

Airdrop collecting bots automatically claim tokens distributed through airdrops, making sure every eligible token is collected. They monitor airdrop announcements and execute the transactions needed to claim the tokens.

7. Non-Attributable ERC20 Bots

Non-attributable bots show automated behavior without a clear purpose, which makes them hard to categorize.

7.1. Miscellaneous Bots

Miscellaneous bots handle a range of tasks that do not fit neatly into the other categories, often because their activity is obfuscated or spread across different use cases. They may be used for experimental purposes or niche functions within the blockchain ecosystem.

7.2. Unclassified Bots

Unclassified bots display behavior that is not yet well understood or documented, making them difficult to categorize. These bots may operate in obscure or emerging areas of blockchain technology, with activity that has not been fully analyzed yet.

Final Thoughts

The Ethereum blockchain leaves room for a large number of bots to operate. Many are used by validators, while others are designed to profit from third-party transactions or assets.

If you are thinking about launching your Liquidity Pool, you should check out our posts on Ethereum antibot.

Source: Detecting Financial Bots on the Ethereum Blockchain