Arbiter (In Progress)

Code that runs code that runs code to study how code runs code and behaves in any environment.

Motivation:

Arbiter is built to streamline insights, analysis and arbitrage simualtion for UniswapV3. The goal is to provide a tool that can be used to monitor activity on pools to measure PnL for liquidity providers and measure economic security of defi protocols. The program is designed to be used by anyone for whatever needs they desire. The current implementation abstracts away worrying about fetching and generating token bindings for any users.

Searchers detect differences in reported prices between markets and execute pure profit¹ trades, which we call atomic arbitrage. The environment for arbitrage is competitive and it is time to streamline the simluation, and analysis of the implications of arbitrage.

Architecture:

There are two primary crates: architect which handles the construction and execution of transactions, and clairvoyance, which handles the monitoring of UniswapV3 pools. The program is designed to be modular and extensible.

Features:

For our next beta release, we will be focusing on the following features:

TODOs:

Build From Source

First, clone the repository to your local environment so

git clone https://github.com/primitivefinance/arbiter.git
cd arbiter
cargo install --path ./crates/cli

Set the PROVIDER environment variable to use a custom provider. arbiter has many subcommands and therefore many arguments. To see the available arguments for pool monitoring, run the following:

arbiter see --help

This will display the help menu for the Clairvoyance crate

Access the `Clairvoyance` monitoring module via this subcommand

Usage: arbiter.exe see [TOKEN0] [TOKEN1] [BP] [CONFIG]

Arguments:
  [TOKEN0]  Token 0 of the pool [default: ETH]
  [TOKEN1]  Token 1 of the pool [default: USDC]
  [BP]      Basis point fee of the pool [default: 5]
  [CONFIG]    Sets a custom config file

Options:
  -h, --help  Print help information

In the above, token0 and token1 will be the token pair used to find the corresponding UniswapV3 pools. Upon running

arbiter see

we default to token0=ETH, token1=USDC, and fee=5. arbiter will return the 5BP pool for the pair ETH/USDC on Uniswap. The program runs and streams transactions (swaps) that update the pool's price like so:

------------NEW SWAP------------
From pool 0x88e6a0c2ddd26feeb64f039a2c41296fcb3f5640
Sender: 0x68b3465833fb72a70ecdf485e0e4c7bd8665fc45, Recipient: 0x1019bf2d607cc646a94a194f7a79e0b385065cff
amount_0 -5235133099
amount_1 4335000000000000000
liquidity 23260193077241608585
tick 205351
price "1.208239460504000000000000000000000000000e+3"

If you would like the price to be in terms of ETH rather than USD for a one basis point pool, you can run

arbiter see USDC ETH 30

Which will return the pool address and then log swaps on this pool with the price now denominated in ETH

Uniswap Pool Result: 0x88e6a0c2ddd26feeb64f039a2c41296fcb3f5640
------------NEW SWAP------------
Pool:      0x88e6a0c2ddd26feeb64f039a2c41296fcb3f5640
Sender:    0x1111111254fb6c44bac0bed2854e76f90643097d
Recipient: 0x134603117a253dd4550eb1fc508e289761be9c3e
Amount_0:  -1949252708
Amount_1:  1603051840877282447
Liquidity: 21972098821216706277
Tick:      205282
Price:     "1.216568804789000000000000000000000000000e+3"

You may also build the executable with cargo build, which will output a binary in target/

Configuration File

To run arbiter with a configuration file, we can run the command cargo run see --config or, if we have built the latest changes, arbiter see --config. This will load in configuration settings from a config.toml file located in ./crates/cli/src/. Feel free to make custom configuration files for your needs. The logic that finds the file is in crates/cli/src/config/mod.rs; remember to add the path of your new file to the list of file paths.

Setting Custom RPC

If you would like to use your own RPC endpoint, then you can set the environment variable PROVIDER. By default, the provider we have set is via Alchemy. To set your own environment variable on a UNIX OS just perform:

export PROVIDER=https://url-to-your-RPC-endpoint.xyz

and replace your own URL as needed. Double check the environment variable is set by:

echo $PROVIDER

or just list all environment variables with:

env

If you need to unset the PROVIDER variable, do:

unset PROVIDER

Contributing

See our Contributing Guidelines

'Pure profit' refers to the fact that atomic arbitrage does not require arbitrageurs to put any capital at risk other than an upfront cost on building the strategy and gas cost to get their transaction included. This contributes to the lucrative nature of atomic arbitrage when done effectively ↩

PossibilityResult/arbiter