Smartnode Arbitrage Functionality
RPL
~ USD
Apr 3rd, 2023BA022310
open
development
node-operation
golang
docker
Summary
Create a Smartnode addon for Rocketarb that supports arbitrage capture for both new minipool deposits and minipool closes / final distributions.
Required Milestones
Milestone A - Smartnode Arbitrage Capture
Payout: 100 RPL
Functionality
- The candidate implementation must be an addon in the Smartnode stack (similar to the Graffiti Wall Writer.)
- The implementation must allow both deposits and minipool closure to route via the Rocketarb methodology instead of directly submitting transactions to the Execution client.
- The Smartnode should check if the addon has been enabled during either process, and prompt the user if they want to use it in the CLI; it should then adjust its behavior accordingly.
- This implies that the addon will only be available for Docker and Hybrid mode users.
- Functionality must be delivered via a submitted pull request to the Smartnode Repository.
Documentation
- Complete and thorough documentation should be delivered describing configuration and usage for Docker and Hybrid mode users.
- This should be delivered via a pull request to the documentation guides repository.
Milestone B - Native Mode Support
Maximum Payout: Not listed
- A supplemental standalone binary for Native Mode users may be included.
- Complete and thorough documentation may be delivered describing configuration and usage for Native Mode users.
Further Notes
Candidate implementation(s) will be scrutinized from a security perspective to ensure the capability does not introduce any attack vectors or vulnerabilities.
Rocketarb is a community-created addon made by @ramana that allows node operators to capture arbitrage from the space created in the deposit pool when making a new minipool (assuming there is a significant premium on rETH on the secondary market). This is currently done using third-party tooling that leverages some undocumented features in the Smartnode’s daemon process.
I’d like to bring Rocketarb directly into the Smartnode as an official addon. This would give new node operators (and old ones) the ability to capture a “bonus” from the rETH price difference between the Rocket Pool contracts and the going market rate, which could be quite significant in some cases - often paying for the entire gas cost associated with creating the minipool.
Verification
- Candidate implementation(s) will be scrutinized from a security perspective to ensure the capability does not introduce any attack vectors or vulnerabilities.
- JCRTP will verify that submitted candidates meet the requirements of Milestone A , and any optionals in Milestone B.
- Please contact the GMC Administrator to arrange this once you have a candidate to deliver.