Testnet Arbitrage Bot
- Status: Completed
- Announced: Jan 11
- Reward: $2000 + 2 HSC
This bot will run at random times to bring the mark price on Hubble within +-10% of FTX and Binance.
Treat the pool like a uniswap pool: xy = kwhere x = usd balance, y = base asset balance in the poolLet x' and y' denote new pool balances and p denote the target mark price=> x'/y'= pFrom uniswap invariant, xy = x'y'=> p * (y')^2 = xy=> y' = sqrt(xy/p)if (y' < y) Long(y - y')else if (y' > y) Short(y' - y)---E.g.Say ether is priced at $1k and pool has 1k ether,so x = 1e6 and y = 1e3, spot price = $1kWe want to get the mark price to $1050,y' = sqrt(1e6 * 1e3 / 1050) = ~976=> Long 24 eth