drifting-rate

Thanks to chenwainuo/drifting-mango for the initial bot

Funding rate arbitrage on https://mango.markets and https://drift.trade

Good guide on perps here

Strategy

• When mark-index is (+) on Mango and (-) on Drift, longs pay shorts on mango and shorts pay longs on drift. Short 1 unit on mango and long 1 unit on drift to capture the funding rate and have neutral exposure
• When mark-index is (-) on Mango and (+) on Drift, longs pay shorts on drift and shorts pay longs on mango. Short 1 unit on drift and long 1 unit on mango to capture the funding rate and have neutral exposure
• When both funding rates are in the same direction, do not open a position unless you can hedge with another market (for example bonfia), additionally you could purchase options (potentially https://01.xyz/)

Majority of this bot was prewritten, working on the following additions

• Abstraction to any perp market
• Log current PnL
• Account for fees
• Integrate telegram bot to post pnl and commands to close all (might be a good start)
• Add in other exchanges like bonfida
• Central Accounting System
• Handle Liquidators
• Add in liquidators for each integration
• Report PNL %
• Report Delta Exposure
• Dump to Database

Running

1. Edit the .env.example to fit with your parameters

Variable	Description
THRESHOLD	% differences between markets to initiate a position.
POSITION_SIZE_USD	size for each position
MAX_POSITION_SIZE	Max position size before going reduce only mode
PRIVATE_KEY	Private key array
RPC_ADDRESS	RPC address
NETWORK	Network you are running like 'mainnet-beta'

2. Start the Bot

# via docker 
## drift liq, mango liq, and drift-mango arb
docker-compose up -d 

# drift liq only 
docker-compose up -d drift-liq 

# mango liq only 
docker-compose up -d mango-liq

# drift-mango arb only 
docker-compose up -d drift-arb

# via typescript 
npx ts-node drift-arb
npx ts-node drift-liq
npx ts-node mango-liq