/Crypto-Long-Short-Trades

Maximizing profits by going Long/Short on ETH

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Crypto-Long-Short-Trades

Dapp is running on the mainnet fork in local machine.

Going Long on ETH:

  • Supply eth to Compound Protocol
  • Borrow stable coin from Compound Protocol (against eth supplied)
  • Buy eth on Uniswap with this borrowed stable coin
  • hold until eth price goes up
  • Sell eth on Uniswap, in exchange of stable coin
  • Repay borrowed stable coin to Compound(along with borrow interest)
  • Keep the difference(and interests earned on Compound) as profits
  • Profits will be in stable coin (can be exchanged)

dapp screenshot

Going Short on ETH:

  • Supply stable coin to Compound Protocol
  • Borrow eth from Compound Protocol
  • Buy stable coin on Uniswap with this borrowed eth
  • hold until eth price goes down
  • Sell stable coin on Uniswap, in exchange of eth
  • Repay borrowed eth to Compound(along with borrow interest)
  • Keep the difference(and interests earned on Compound) as profits
  • Profits will be in eth (can be exchanged)

dapp screenshot

Smart Contracts:

  • Imports(for both the contracts):

    • @openzeppelin/contracts/token/ERC20/IERC20.sol
    • Compound
      • interface CErc20
      • interface CEth
      • interface Comptroller
      • interface PriceFeed
    • Uniswap
      • interface IUniswapV2Router

  • Contracts used(for both the contracts):

    • CEth
    • CErc20 (cDai)
    • IERC20 (DAI)
    • Comptroller
    • PriceFeed
    • IUniswapV2Router
    • IERC20 (weth)

1. contractLong

  • constructor(address _cEth, address _cTokenBorrow, address _tokenBorrow, uint256 _decimals){}
    • contract pointer assignments
    • entering the Ceth market to supply ETH
    • assgining owner to deployer
  • receive() external payable {}
  • modifier onlyOwner() {}
  • function supply() external payable {}
    • supply eth to compound and get ceth
  • function getMaxBorrow() public view returns (uint256) {}
    • getting account liquidity (using comptroller)
    • getting price of DAI (using pricefeed)
    • returns max borrow - (liquidity) / (dai price)
  • function goLong_ETH(uint256 borrowAmount, uint256 uniswapTransactionDeadline) external onlyOwner {}
    • borrow DAI
    • approve uniswapRouter to take all DAI from contract address
    • swapind all DAI for eth on uniswap
  • function claimProfits(uint256 uniswapTransactionDeadline) external onlyOwner{}
    • sell all eth from contract address on uniswap for DAI
    • get current borrowed balance on compound (using ctoken/cDai), borrowed balance + interest on borrow
    • approving cDai to spend all DAI from contract address
    • repaying borrow
    • get current balance of underlying(eth) supplied to compound (using ctoken/ceth), supplied balance + interest on supply
    • redeem underlying
  • function withdraw_DAI() external onlyOwner {}
    • withdraw DAI(profits) to contract deploywer's address
  • function getSuppliedBalance() external returns (uint256) {}
    • returns balance of underlying supplied to compound (using ctoken/ceth), supplied balance + interest on supply
  • function getBorrowBalance() external returns (uint256) {}
    • returns borrow balance (suing ctoken/cDai), borrowed balance + interest on borrow
  • function getAccountLiquidity() external view returns (uint256 liquidity, uint256 shortfall) {}
    • returns account liquidity and shortfall (using comptroller)

2. contractShort

(uses another contract swapETHforDAI.sol, to swap eth for dai)

  • constructor (address _cEth, address _cDAI, address _DAI, uint256 _decimals) {}
    • contract pointer assignments
    • entering the CDai market
    • assgining owner to deployer
  • receive() external payable {}
  • modifier onlyOwner() {}
  • function supply(uint256 amountDAI) external payable {}
    • approve cDai to spend all DAI from contract address
    • supply DAI to compound and get cDai
  • function getMaxBorrow() public view returns (uint256) {}
    • same as contractLong, but this time pricefeed is used to get price of ceth
  • function goShort_ETH( uint256 borrowAmount, uint256 uniswapTransactionDeadline) external onlyOwner {}
    • borrow eth (using ceth)
    • swap al the borrowed eth on uniswap for as many DAI as possible
  • function claimProfits(uint256 uniswapTransactionDeadline) external onlyOwner {}
    • approve uniswap router to spend all DAI from contract balance
    • exchange all DAI for ETH
    • get current borrow balance (using ceth), borrowed balance + interest on borrow
    • repay the borrow
    • get current balance of underlying (DAI) supplied, supplied balance + interest on supply
    • redeem underlying
  • function withdraw_ETH() external onlyOwner {}
    • transfer all eth from contract balance to contract deployer
  • function getSuppliedBalance() external returns (uint256) {}
    • returns balance of underlying (using cDai), supplied balance + interest on supply
  • function getBorrowBalance() external returns (uint256) {}
    • returns borrow balance (using ceth), borrowed balance + interest on borrow
  • function getAccountLiquidity() external view returns (uint256 liquidity, uint256 shortfall) {}
    • returns account liquidity and shortfall (using comptroller)