Each time i see bot frontrun it's a contract address. Why it's a contract address ? People who use bot are not able to use their ethereum address directly ? or there is a benefit to use contract address maybe ?
1 Answer
A contract can do some things that a regular address (EOA) cannot do:
- decrease gas costs by taking advantage of gas refunds (self destruct calls, e.g. CHI gas token)
- batch multiple contract calls into one transaction
- take a flashloan, make profit, repay it within a single transaction
Frontrunners, arbitrageurs, etc. tend to employ such techniques. That's why most bots don't show EOA but contract addresses.