The watcher reads all open positions from the Sovryn marginTrade contracts and continuosly 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.
If margin < maintenance, it initiates liquidation on the contract.
If it fails, it checks if the liquidation criteria are still met.
If not, it keeps observing.
If yes, it sends an error notification to a telegram group for manual processing.
If the tx was not confirmed after 10 minutes, it resends the transaction with a higher gas fee.
The liquidator needs considerable funds in all currencies provided to be able to liquidate a position. He needs to allow the protocol contract to access his tokens in advance (Approve token transfers of all involved Erc20 tokens) and have enough RBTC to cover transaction costs.
When the maximum loan duration has been exceeded, the position will need to be rolled over. The function "rollover" on the protocol contract extends the loan duration by the maximum term (28 days for margin trades at the moment of writing) and pays the interest to the lender. The callers reward is 0.1% of the position size and receives 2 * the gas cost using the fast gas price as base for the calculation as well as 0.1% .
Earn $ through abitrage: if the expected price from the amm deviates more than 2 % from the oracle price buy the side which is off and exchange the money back on money onchain.
NodeJs > 12.1
Nodemon
Webpack
1. npm install
2. To build the client create an empty directory "public/dist" and run "npm run build-client"
3. Create empty directories "logs" and "db" in the project root
4. Create directory "secrets" and within a file account.js with the credentials of the liquidator/rollover/arbitrage wallets
export default {
"liquidator": [{
adr: "",
pKey: ""
}],
"rollover": [{
adr: "",
pKey: ""
}],
"arbitrage": [{
adr: "",
pKey: ""
}],
}
To receive notifications on telegram about new transactions and errors create a telegram bot-token-id and write in in a file /secrets/telegram.js
export default "[telegram-bot-token]";
export default ""; for no notifications
5. Charge the watcher wallets with RBtc and Doc
6. Execute util/approval.js to approve the Sovryn smart contract to spend Doc on behalf of the watcher wallets as well as the swap network contract to spend
Doc on behalf of the arbitrage wallet.
npm run start:[mainnet || testnet]Check
http://your-ip:3000/ to see some liquidation processing info
The watcher uses pm2 for log handling.
To enable Log-rotationdo "pm2 install pm2-logrotate" and afterwards "pm2 set pm2-logrotate:max_size 1000K"
MIT Free Software, Hell Yeah!