Arbitrage bot

[rndquu]

In order to maintain Dollar token USD peg LibUbiquityPool provides the following arbitrage mechanic:

1. If Dollar token USD price >1$ (on a secondary market) then arbitragers are incentivised to
   a) Mint 1 Dollar token for 1 USD of collateral in the LibUbiquityPool
   b) Sell 1 Dollar token on a secondary market
2. On the contrary, If Dollar token USD price <1$ (on a secondary market) then arbitragers are incentivised to:
   a) Buy cheap Dollar token on a secondary market
   b) Redeem Dollar token for collateral worth 1 USD in the LibUbiquityPool

On early project stage any large swap may affect the Dollar token price greatly and the pool (where the swap occurred) may remain unbalanced for a long time which in turn depegs the Dollar token.

As a part of this issue we should create an arbitrage bot (i.e. nodejs app) which could be run on VPS or any suitable PAAS (heroku, cloudflare, etc...) to catch arbitrage opportunities in order to keep the Dollar token USD pegged on early project stage.

What should be done:

1. Create a new nodejs app that will catch arbitrage opportunities for the Dollar token
2. Add unit tests for basic functionality
3. Prepare a clear README of how to run the bot

Notes:

• It makes sense to create the arbitrage bot in a separate repository.
• Deployed contract addresses (mainnet): here

[0x4007]

Perhaps we can fork a bot dropping the time estimate down to a day?

It could be interesting to have a worker spawn on transaction events to the market. Webhook style. But maybe too complicated due to nodejs limitations

[rndquu]

It could be interesting to have a worker spawn on transaction events to the market. Webhook style. But maybe too complicated due to nodejs limitations

Exactly. We need a simple "fork and run" solution because current version of the arbitrage bot will viable only until more sophisticated MEV bots add Dollar token pools to their platforms.

Perhaps we can fork a bot dropping the time estimate down to a day?

If there already exists a solution, then yes, time estimate can be reduced.

have a worker spawn on transaction events to the market

Current version of the arbitrage bot could be run on github cron schedule.

So the flow for an end user would be:

1. Fork arbitrage bot
2. Set env variables in github secrets
3. On github cron schedule the bot will check available arbitrage opportunities

[FibrinLab]

/start

[ubiquity-os]

Deadline	Fri, Oct 4, 1:23 PM UTC
Beneficiary	0x3EFFe91C62d1864C3B791Bc7bbD43b68B899d12A

Tip

• Use /wallet 0x0000...0000 if you want to update your registered payment wallet address.
• Be sure to open a draft pull request as soon as possible to communicate updates on your progress.
• Be sure to provide timely updates to us when requested, or you will be automatically unassigned from the task.

[rndquu]

@FibrinLab Did you check the expected flow here (the bot should be able to run as a github action)?

[FibrinLab]

@FibrinLab Did you check the expected flow here (the bot should be able to run as a github action)?

Yes. Working on this

[FibrinLab]

@rndquu I understand this would need a new repo. Where do I make a draft pull request?

[rndquu]

@rndquu I understand this would need a new repo. Where do I make a draft pull request?

https://github.com/ubiquity/arbitrage-bot

[0x4007]

@rndquu I understand this would need a new repo. Where do I make a draft pull request?

https://github.com/ubiquity/arbitrage-bot

In the future you should make a new repo using our ts-template and host on your own org. Next you work on a pull to your own org but link this task using a closing keyword.

I don't want to make new repositories until work is completed because I had to delete eight "ts-templates" across our organization due to all the non completes last week.

[FibrinLab]

@rndquu Some updates, created draft pool with arbitrage contract modified to work with Ubq pool. Working on Cron job.

[surafeldev]

/help

[ubiquity-os]

Available Commands

Command	Description	Example
/help	List all available commands.	/help
/allow	Allows the user to modify the given label.	/allow @user1 label
/query	Returns the user's wallet, access, and multiplier information.	/query @ubiquibot
/start	Assign yourself to the issue.	/start
/stop	Unassign yourself from the issue.	/stop
/wallet	Register your wallet address for payments.	/wallet ubq.eth

[surafeldev]

/wallet 0x0013f4217f6a8B48A92f7EA5d811A5F8D8364B93

[ubiquity-os]

+ Successfully registered wallet address

[surafeldev]

/start

[ubiquity-os]

Warning!	This task was created over 51 days ago. Please confirm that this issue specification is accurate before starting.
Deadline	Sun, Nov 3, 1:28 PM UTC
Beneficiary	0x0013f4217f6a8B48A92f7EA5d811A5F8D8364B93

Tip

• Use /wallet 0x0000...0000 if you want to update your registered payment wallet address.
• Be sure to open a draft pull request as soon as possible to communicate updates on your progress.
• Be sure to provide timely updates to us when requested, or you will be automatically unassigned from the task.

[kingsley-einstein]

/start

[ubiquity-os]

! This issue is already assigned. Please choose another unassigned task.

[surafeldev]

https://github.com/surafeldev/arbitrage_bot

I made this implementation for this task, let me know if there is any thing I have to consider

[0x4007]

@surafeldev You need to do a pull to your own default branch and link this issue so all of us including the bot can track progress

[surafeldev]

as it is stated in the description I have created a separated Repo for the Bot, Do I need to create a PA from bot repo or this repo ?

[0x4007]

Yes you link this issue

[surafeldev]

am just confused, How can I do that ?

do I need to create separate branch and add the bots repo link with this issue

[surafeldev]

#976
take a look at the repo inside the PA

[0x4007]

You're not using our template and you linked this wrong. I'm not optimistic about the success of this deliverable.

[surafeldev]

I'll take a look at the template and rebuild the deliverable alongside it to ensure it meets the project's standards. I appreciate your guidance and will make the necessary adjustments.

[surafeldev]

I couldn`t find the dollar token in Dex to implement the price feature; where can I find the secondary market API? or should I have to build it by expecting it will be implemented ?

[ubiquity-os]

Passed the deadline and no activity is detected, removing assignees: @surafeldev.

[henalolp]

/help

[ubiquity-os]

Available Commands

Command	Description	Example
/help	List all available commands.	/help
/allow	Allows the user to modify the given label.	/allow @user1 label
/query	Returns the user's wallet, access, and multiplier information.	/query @ubiquibot
/start	Assign yourself to the issue.	/start
/stop	Unassign yourself from the issue.	/stop
/wallet	Register your wallet address for payments.	/wallet ubq.eth

[henalolp]

/wallet 0x226AAE6Db84dca652818400750b8BF96a077349e

[ubiquity-os]

+ Successfully registered wallet address

[kingsley-einstein]

/start

[ubiquity-os]

! This task does not reflect a business priority at the moment and cannot be started. This will be reassessed in the coming weeks.

[henalolp]

/start

[henalolp]

/start