simple-arbitrage-keeper
NOTE: This keeper is not complete. It uses pymaker and accidentally calls MatchingMarket.offer(), which isn't a guaranteed market buy (i.e. take order) in all permutations, so to improve this keeper, you'll need to call one of OasisDex's Taker functions.
This keeper performs simple arbitrage between OasisDex and Uniswap. It's structure is inspired by the original arbitrage-keeper, which performs arbitrage on the smart contracts powering Oasis.app, join, exit, boom and bust in Single Collateral Dai.
This keeper constantly looks for profitable arbitrage opportunities within a token pair across OasisDex and Uniswap V1 and attempts to execute them the moment they becomes available.
It is simple in construction, utilizing the Oasis REST Api and on-chain matching engine. It is also bounded by a single token pair and would increase its opportunity horizon and profitability if it evaluates all token pairs, overlapping across both exchanges.
The opportunity is defined as the profit amount of the best arbitrage opportunity, which follows a simple call structure:
- Sell
entry_tokenand buyarb_tokenonstart_exchange - Sell
arb_tokenand buyentry_tokenonend_exchange
Provided that a TxManager is deployed and owned by the ETH_FROM address, this keeper can execute contract calls atomically, meaning any failed function call will revert the entire transaction; this prevents the case where ETH_FROM, the account the keeper operates from, would be left with the arb_token if the selling function call on end_exchange fails.
Deployment steps and source code of the TxManager can be found here: https://github.com/makerdao/tx-manager.
We reccommend that first time users go through the Simple Arbitrage Keeper guide.
Installation
This project uses the python version in pymaker.
In order to clone the project and install required third-party packages please execute:
git clone https://github.com/makerdao/simple-arbitrage-keeper.git
cd simple-arbitrage-keeper
git submodule update --init --recursive
pip3 install -r lib/pymaker/requirements.txt
For some known Ubuntu and macOS issues see the pymaker README.
Usage
While in the simple-arbitrage-keeper directory, run the following command with required arguments:
usage: simple-arbitrage-keeper [-h] [--rpc-host RPC_HOST]
[--rpc-port RPC_PORT]
[--rpc-timeout RPC_TIMEOUT] --eth-from ETH_FROM
--eth-key [ETH_KEY [ETH_KEY ...]]
--uniswap-entry-exchange UNISWAP_ENTRY_EXCHANGE
--uniswap-arb-exchange UNISWAP_ARB_EXCHANGE
--oasis-address OASIS_ADDRESS
--oasis-api-endpoint OASIS_API_ENDPOINT
[--relayer-per-page RELAYER_PER_PAGE]
--tx-manager TX_MANAGER [--gas-price GAS_PRICE]
--entry-token ENTRY_TOKEN --arb-token ARB_TOKEN
--arb-token-name ARB_TOKEN_NAME --min-profit
MIN_PROFIT --max-engagement MAX_ENGAGEMENT
[--max-errors MAX_ERRORS] [--debug]
optional arguments:
-h, --help show this help message and exit
--rpc-host RPC_HOST JSON-RPC host (default: `localhost')
--rpc-port RPC_PORT JSON-RPC port (default: `8545')
--rpc-timeout RPC_TIMEOUT
JSON-RPC timeout (in seconds, default: 10)
--eth-from ETH_FROM Ethereum address from which to send transactions;
checksummed (e.g. '0x12AebC')
--eth-key [ETH_KEY [ETH_KEY ...]]
Ethereum private key(s) to use (e.g. 'key_file=/path/t
o/keystore.json,pass_file=/path/to/passphrase.txt')
--uniswap-entry-exchange UNISWAP_ENTRY_EXCHANGE
Ethereum address of the Uniswap Exchange contract for
the entry token market; checksummed (e.g. '0x12AebC')
--uniswap-arb-exchange UNISWAP_ARB_EXCHANGE
Ethereum address of the Uniswap Exchange contract for
the arb token market; checksummed (e.g. '0x12AebC')
--oasis-address OASIS_ADDRESS
Ethereum address of the OasisDEX contract; checksummed
(e.g. '0x12AebC')
--oasis-api-endpoint OASIS_API_ENDPOINT
Endpoint of of the Oasis V2 REST API (e.g. 'https://kovan-api.oasisdex.com' )
--relayer-per-page RELAYER_PER_PAGE
Number of orders to fetch per one page from the 0x
Relayer API (default: 100)
--tx-manager TX_MANAGER
Ethereum address of the TxManager contract to use for
multi-step arbitrage; checksummed (e.g. '0x12AebC')
--gas-price GAS_PRICE
Gas price in Wei (default: node default), (e.g.
1000000000 for 1 GWei)
--entry-token ENTRY_TOKEN
The token address that the bot starts and ends with in
every transaction; checksummed (e.g. '0x12AebC')
--arb-token ARB_TOKEN
The token address that arbitraged between both
exchanges; checksummed (e.g. '0x12AebC')
--arb-token-name ARB_TOKEN_NAME
The token name that arbitraged between both exchanges
(e.g. 'SAI', 'WETH', 'REP')
--min-profit MIN_PROFIT
Ether amount of minimum profit (in base token) from
one arbitrage operation (e.g. 1 for 1 Sai min profit)
--max-engagement MAX_ENGAGEMENT
Ether amount of maximum engagement (in base token) in
one arbitrage operation (e.g. 100 for 100 Sai max
engagement)
--max-errors MAX_ERRORS
Maximum number of allowed errors before the keeper
terminates (default: 100)
--debug Enable debug output
Here's an example script to easily spin up the keeper for Kovan, entry token DAI, and arb token WETH:
#!/bin/bash
/path/to/simple-arbitrage-keeper/bin/simple-arbitrage-keeper \
--rpc-host 'https://parity.node:8545' \
--eth-from '0xABC123' \
--eth-key 'key_file=/path/to/keystore.txt,pass_file=/path/to/passphraseFile.txt' \
--uniswap-entry-exchange '0x47D4Af3BBaEC0dE4dba5F44ae8Ed2761977D32d6' \
--uniswap-arb-exchange '0x1D79BcC198281C5F9B52bf24F671437BaDd3a688' \
--oasis-address '0x4A6bC4e803c62081ffEbCc8d227B5a87a58f1F8F' \
--oasis-api-endpoint 'https://kovan-api.oasisdex.com' \
--tx-manager '0xABC123' \
--entry-token '0x4F96Fe3b7A6Cf9725f59d353F723c1bDb64CA6Aa' \
--arb-token '0xd0A1E359811322d97991E03f863a0C30C2cF029C' \
--arb-token-name 'WETH' \
--min-profit 1 \
--max-engagement 10 \
License
See COPYING file.
Disclaimer
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