⚙️How it works

Since each transaction block is limited in size, there is always competition among users to get their transactions approved first. There is also no standard set of rules that determine the order in which transactions are sent for verification on a blockchain network. In most cases, validators decide the order based on gas fees. The higher the GAS fee, the more likely the transaction will be approved in the first place. CoinMetrics bots can identify profit opportunities and attract validators by paying higher gas fees to approve their transactions before others or include them in the next block.

Phase One: Observe Transactions

Transactions on Ethereum are never executed immediately. They are queued to be selected and sent as part of a block for approval. They are routed through public nodes on the network, using CoinMetrics bots to observe transactions in the mempool to identify profitable transactions.

Phase 2: Simulate trading for testing

CoinMetrics configures nodes for high-speed computing through global deployment. Users can deploy CoinMetrics robots and simulate transactions on their private nodes. These simulations help observe the impact of user-chosen transactions on the blockchain, analyze and gain insight into whether there are lucrative profit opportunities.

Phase 3: Bundle and send transactions

If the simulation shows profitable results. The CoinMetrics bot can start bundling its transactions with selected transactions from the public mempool. Bundling ensures that trades are executed in the same order as expected to ensure maximum profit output of the trading strategy.

Phase 4: Validator nodes propose new blocks

CoinMetrics Boost allows validator nodes to receive bundled transactions created by builders. A validator proposes a new block to the Ethereum network, and the proposed block is added to the network. Therefore, users with CoinMetrics bots earn profits, while validators receive part of the profits in the form of Gas.