rocketarb

Arbitrage rETH mint/burn with minipool deposit/withdrawal

Arb the rETH premium when you create a minipool!

How to? Here are the steps... Message me on the RocketPool Discord if you have any problems!

Dry run creating the minipool the normal way with the Rocketpool smartnode (>= 1.7.0). Stop before the final ARE YOU SURE... prompt and cancel it.
Ensure your node's RPC port is exposed locally as described here.
Install the requirements on your node machine: nodejs (>= 18), and npm.
Clone this repo (git clone https://github.com/xrchz/rocketarb), cd rocketarb, and npm install to download the js dependencies.
Run ./rocketarb.js. It should be fine with no arguments.
- Pass the --help to see more options if something goes wrong.
- A typical flow might involve, first: ./rocketarb.js --dry-run
- Then if that succeeds without any reverts: ./rocketarb.js --resume-deposit

If you have used rocketarb before and want to upgrade to the latest version, you can simply git pull your clone of this repo.

What does it do?

Ask the smartnode to create a minipool deposit transaction from your node account.
Create a transaction to call the rocketarb contract, which will flash loan 16 ETH, deposit it in the Rocket Pool deposit pool (using the newly created space from the minipool deposit), sell the minted rETH using 1Inch, repay the flash loan, and send any profit back to your node account.
Submit the two transactions above in a bundle using Flashbots.

This way you get to benefit from the rETH premium by the space temporarily created in the deposit pool by your new minipool.

Tips

The smartnode needs to be at least version 1.7.0.
Try --rpc http://<your node local ip>:8545 if the default (http://localhost:8545) does not work.
You can try submitting the Flashbots bundle again (in case it failed) without recreating the transactions. Use --resume-deposit to only recreate the arb transaction (with fresh 1Inch swap data); use the --resume option to recreate neither (i.e., reuse both transactions). (The bundle gets saved in bundle.json by default.)
The gas fee needs to be attractive enough for Flashbots to accept the bundle: the target block base fee per gas is burned and the block proposer receives any additional fee per gas up to the specified maximum priority fee per gas limited by the specified maximum fee per gas. The priority fee is what makes a bundle attractive. rocketarb uses the same maximum fees for both the deposit and arbitrage transactions, and the total gas will be about 2.7 million (approximately: 2 million for the deposit, 800k for the arbitrage -- these vary and can be hard to predict exactly).
rocketarb will try to ensure to refund at least some (2.8M gas worth by default, change it with the --gas-refund option) of your gas costs with the arbitrage profits. This is ensured by making the arbitrage transaction revert (not enough profit) if it does not produce at least this much profit.
If your bundle is not getting included (BlockPassedWithoutInclusion) most likely the transactions are reverting with some failure (try the --dry-run option to investigate), or the gas fees are too low for the current base fee.
If the simulation returns execution reverted without further details, probably the gas limit for the arb transaction is too low; you could try increasing it with the --gas-limit option (and you might also like to increase --gas-refund accordingly).
Every time we ask the smartnode for a deposit transaction, it increments its internal validator index (saved in your node's wallet file). If you need to re-run (e.g., to use a different maximum fee per gas) and don't want to waste the index, you can manually decrement it by editing the wallet file. Wasting indices is not a problem for your node, however - the generated validator keys for an unused index will simply remain unused.
It is safe to unexpose your node's RPC port after you're done with rocketarb if you prefer leaving it hidden.

Do it without a flash loan

Pass the --no-flash-loan option to use capital (e.g., 16 ETH, or whatever the --amount of your minipool deposit is) in your node account instead of a flash loan.
Why do this? It could reduce the total gas cost, and thereby increase profits. You can control the gas limits with the various --X-gas-limit options.
Warning: with --no-flash-loan there is no check for minimum profit, i.e., the --gas-refund option is ignored. Check the premium is healthy (e.g,. >1%) with the --premium option first.
By default rocketarb tries to arb both the minipool deposit amount and any free space in the deposit pool. If you do not have enough capital to additionally cover the existing free space in the deposit pool, pass the --no-use-dp option.

Do it without connecting to the smartnode

By default rocketarb uses the smartnode daemon to sign all transactions. For security, you can instead use the --daemon <program> argument to avoid running rocketarb on your node. The <program> supplied will be called in two ways by rocketarb, with different arguments:

<program> api node deposit <amount> <commission> <salt> false

The program should output a signed minipool deposit transaction (without any leading 0x), just as the smartnode daemon api would output with these arguments. (You could run the smartnode daemon once first to get the data then save it for further use by rocketarb.)
<program> api node sign <inputSignedTx>

The program should output JSON for an object containing two keys: {status: "success", signedData: <signedTx>} where signedTx is a version of the transaction represented by <inputSignedTx> signed by the account you want to do the non-deposit transactions with. <inputSignedTx> is a signed transaction (without the leading 0x) signed by a random account. signedTx should be a string that includes a leading 0x.