JOY Arb Hummingbot

[ignazio-bovo]

• Adapt amm_arb to accomodate only taker order on Uniswap (first market) ~ 2hrs
• Parameters adjustment ~ 2 hr
• Build Errors ~ 2 hrs
• update parameters
• Deployment consideration

Parameters

Property	Description	Type	Default
strategy	Strategy name	string	"amm_joy_arb"
amm_connector	DEX connector	string	Uniswap on Base
amm_market	Token trading pair for AMM	string	$JOY/$USDT
cex_connector	CEX connector	string	MEXC
cex_market	Token trading pair for CEX	string	$JOY/USDT
pool_id	Pool ID to interact with on the DEX	string	""
order_amount	Amount of base asset per order	decimal	None
min_profitability	Minimum profitability for trade (%)	decimal	1%
amm_slippage_buffer	Buffer for slippage on AMM orders (%)	decimal	1%
debug_price_shim	Enable debug price shim for tests	boolean	False
gateway_transaction_cancel_interval	After what time should blockchain transactions be cancelled if they are not included in a block	integer	600 secs = 10 mins
rate_oracle_enabled	Use rate oracle	boolean	True
quote_conversion_rate	Fixed rate to convert quote assets	decimal	1

Notes

• To speed up implementation we deliberately choose MEXC as reference CEX for price data

Deployment consideration

Order size

A small order size at the beginning is necessary to mitigate operational risks. This is also what JSG is doing.
We will start the deployment with very low trade size. On uniswap v3 is possible to do an arbitrarely small size. The gas fees (on Base) are very low as well (https://basescan.org/chart/gasprice)
When you submit an order on Uniswap your total size in usd is partly eroded by pool fees and gas fees that have total cost
total_cost_usd = gas_fee_usd + pool_fee * order_value_usd and your net profit is net_profit = order_value_usd - total_cost_usd . Applying the constraint of net_profit = min_profitability * order_value_usd, with pool_fee = 3%, gas_fee_usd = 0.004 USD and min_profitability = 1% you get order_value_usd = 0.00417 USD as a minimum baseline

Trade frequency

At most one trade every 30s, this frequency is copied from JSG deployment rules of thumb.