Scope: The node reads all open positions from the Sovryn trading contracts and continuously monitors for changes. The app has three main functions: Liquidation of expired positions, rollover of open positions and taking advantage of arbitrage opportunities on the AMM.
Repository: https://github.com/DistributedCollective/Sovryn-Watcher
Status: in active development.
Disclaimer: This app can cause your wallets to lose funds. The creators do not provide any compensation for losses due to inappropriate app management, market conditions or bugs. Operate at your own risk!
There is one instance per network: RSK mainnet and RSK testnet. Both are using Xntinels nodes.
The app has low hardware requirements and does not need exceptional fast internet. Supported operating systems are Linux/Mac/Windows. The administrator needs to have basic NodeJs knowledge.
The rollover wallet needs only funds to cover transaction costs (RBTC. The minimal requirement for the liquidator wallet to be able to liquidate a position completely is the current maximum position size * 5 (current max leverage). The amount needs to be deposited in RBTC and Doc.
The arbitrage wallet needs funds in the size of the current maximum position size in RBTC and DoC.
We recommend to start with 1 rollover wallet, 1 arbitrage wallet and 1 liquidator wallet per 100 open positions on the contract.
Current maximum position size is 210$.
Create a telegram group and add a bot to receive information about successful and failing transactions.
The watcher needs to be maintained and monitored. In general, there are 3 tasks:
There exists a race condition between the moment an action is triggered and the moment the watchers transaction is mined. A transaction may fail because of competitors front running each other (arbitrage/rollover/liquidation) or a price change in the reverse direction (liquidation).
Failing transactions cause a loss:
Profit optimization is not implemented. To operate this app with profit we recommend to observe competitors and step by step increase the gas-costs if necessary. Another way of increasing the chance of liquidation profit is to increase the number of liquidator wallets. A successful liquidation has a Transaction cost of ~0,000010 BTC.
Short-term:
Mid-term:
Report errors to jamie on Discord/Telegram. Every feedback or suggestions for improvements are welcome. Updates are announced on Discord.