zetamarkets/sdk

Liquidation Bot

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Liquidation Bot - Prize Bounty

Bounty Description

A liquidator that is an improvement over the simple liquidator found in Zeta's SDK examples.

The liquidator:

  • Should have optional parameters to either:
  1. Liquidate positions relative to a margin consumption cap (e.g. 50%), and use the remaining margin to hedge the book's delta positions using futures, referencing a Black model of choice (preferably).
  2. Or hedge out of its positions when liquidating, meaning the liquidator is warehousing little to no potential risk.

It should also be able to fetch margin accounts on a cadence and cache them, updating them on account change to ensure minimal number of RPC getProgramAccount calls:

  • Calculate the delta of each account
  • Reference a CeFi price feed for SOL/USD and compute the delta pnl for each account, pre-empting potential liquidations for those accounts.
  • Robust logging / a simple frontend which can show liquidation logs and current greek risks that the liquidator is warehousing.

Requirements

Submissions will be reviewed on an on-going basis. Please include the following in your submission:

  • Github repo (the cleaner the better!)
  • Demo of the liquidator running successfully (where possible)

Criteria

We will look at:

  • Quality of the github repo
  • Implementation of the liquidator

Deadline

  • All submissions will reviewed by 01/03/2022 - any submissions after this will be ineligible for a prize from this bounty program.

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