Running DEX Bots
Now that you have properly installed, tested, and configured Gateway, it's time to run a bot that calls the Gateway DEX endpoints.
You can either run the AMM-Arbitrage Strategy, or the sample Scripts that utilize Gateway if you want more fine-grained control.
Currently, if any tokens do not have sufficient allowance, both strategies and scripts will not start and the logs will show messages like
[connector] is not ready. Please wait... continually. See Approving tokens for information on how to approve tokens.
A good way to safely test Gateway is to run the AMM-Arbitrage strategy between a testnet DEX connector and a CEX connector in paper trading mode.
The guide below shows you how to run this strategy using the
uniswap-ethereum-goerli connector versus the
Connect a wallet to Uniswap Goerli with
gateway connect uniswap. Afterwards, you should be able to see
uniswap_ethereum_goerliwhen you run
Convert some test ETH into WETH and DAI on Uniswap.
Approve both WETH and DAI - see Working with Tokens for more details.
Make sure that your wallet still have a balance of at least 0.2 test ETH for gas costs.
Check your paper trading balances with
balance paperand add balances for ETH and USDT if needed.
create command to set up an
amm_arb strategy. Answer the question prompts presented so that you to generate the following configuration:
template_version: 5 strategy: amm_arb connector_1: uniswap_ethereum_goerli market_1: WETH-DAI connector_2: binance_paper_trade market_2: ETH-USDT min_profitability: 1.0 market_1_slippage_buffer: 1.0 market_2_slippage_buffer: 0.0 concurrent_orders_submission: false debug_price_shim: false gateway_transaction_cancel_interval: 600
Alternatively, you can copy the section above into a
*.yml file and use the
import command to import it as a strategy.
start command, and then answer
Yes when asked to confirm the strategy settings.
After starting the
amm_arb strategy, you’ll see the apparent prices on the AMM market will track the prices on the CEX exchange, and if there is none, the strategy will report no arbitrage opportunities.
When it detects an arbitrage opportunity where the total cost to execute the transactions (including gas and fees) still results in a profit higher than (
min_profitability), then the bot will automatically execute the two transactions.
concurrent_orders_submission is false, then the bot will try to execute and confirm the transaction on
connector_1 before executing the transaction on
Triggering arbitrage with
On testnets like Goerli, prices are typically out of line with CEXs, so getting transactions executed is trivial. However, when testing on mainnets, triggering an arbitrage transaction may be trickier.
One option is to set the
min_profitability to be negative, but that may result in losses when testing on mainnet. Therefore, we have added a
debug_price_shim feature that lets you modify the apparent prices on the AMM market in the Debug Console and trigger mock arbitrage transactions.
To use this feature, set
debug_price_shim to True in your
amm-arb configuration, either by modifying the config file or running the
Let’s say you want to raise the WETH prices on the AMM connector by 40 USDT, in order to trigger a sell on the AMM connector and a buy on the CEX connector.
The code snippet below will cause
amm_arb to send sell transactions to Uniswap Goerli and simulated buys on Binance paper trade market. The price delta will persist in the AMM market for 1 minute. Afterwards, it’ll return back to tracking the CEX paper trade market.
Conversely, if you want to trigger buys on the AMM side and sells on the CEX paper trade side, you can give negative delta prices to make WETH-DAI on the AMM side cheaper.
Again, the negative delta price will persist on the AMM market for 1 minute.
If the price delta isn’t enough to trigger an arb opportunity due to high gas fees, feel free to use large delta values, e.g.
Decimal(200) or even
Decimal(500). While the price deltas needed seem unrealistically large - this is reflective of real trading constraints because a small order size would need a large price delta to cover the gas fees.
Sample Gateway scripts¶
You can also run the following sample Gateway scripts in the
/scripts/ folder of the Hummingbot repo: