ChiaSwap

Chia Swap is a concentrated liquidity program that uses the UniSwap V3 formula for concentrated Liquidy.

Concentrated Liquidity

Concentrated liquidity can be provided between two prices. The upper and lower price. For example, if you want to trade between the ranges of 12.50 - 15.50 and the current price is 13.4.

How to use

Step 0 - Initialize

Get a copy of the chiaswap.ps1 and then dot load it. This will give access to all the functions. Be sure to prepend the beginning (.) .

. ./chiaswap.ps1

Step 1 - Create Config

This config will set an upper price per xch at $15.50, a Lower price per xch of 12.50 and the starting price of 14.10.
This will use the Base Wrapped USDC coin and we are starting with 100 XCH as liquidity. There will be 100 steps between the highest price and lowest price.

Note

The feePercent is the amount (in CAT) you charge for providing the service. You will add/remove this fee in (CAT token) from each bid/ask offer. For example, if your fee was 0.01 you would charge a 1% fee. If you were selling an amount of XCH for $10.00, your offer would request $10.10 instead of $10.00. Likewise, if you were buying $10.00 worth of XCH, you would offer $9.90 instead of 10.

Note: This config is created once, even if the current price changes, this is data is used for the formula for the concentrated liquidity. Do not keep changing this based on the current price.

 New-ChiaSwapConfig -UpperPrice 15.50 -LowerPrice 12.50 -StartingPrice 14.10 -FeePercent 0.008 -CatCoin wUSDC.b -StartingXch 100 -Steps 100 -Force

Step 2 - Grab your new Config

This step creates the liquidity data needed for trading.

$Config = Get-ChiaSwapConfig 

Step 3 - (Optional) Determine how much XCH/CAT you need to provide liquidity.

Get-LiquidityRequirements $Config

CatToken        : wUSDC.b
CatCoinRequired : 1782.574
XchRequired     : 100

Step 4 - Determine how to split your coins.

Build your trading table

Note

The fee is what you charge for providing liquidity, not the blockchain fee.

$Table = Build-TickTable -Config $Config
$Quotes = $quotes = Build-QuotesforCurrentXCH -CurrentXch ($Config.StartingXCH*1000000000000)  -Table $table -QuoteDepth 5

$Quotes | Format-Table

type amm_offered_amount  fee offered_amount requested_amount amm_price_per_xch final_price_per_xch
---- ------------------  --- -------------- ---------------- ----------------- -------------------
sell              33.05 0.23           2.34            33.28             14.11               14.20
sell              33.12 0.23           2.34            33.35             14.14               14.24
sell              33.19 0.23           2.34            33.42             14.17               14.27
sell              33.26 0.23           2.34            33.49             14.20               14.30
sell              33.33 0.23           2.34            33.57             14.23               14.33
buy               32.97 0.23          32.74             2.34             14.08               13.98
buy               32.90 0.23          32.67             2.34             14.05               13.95
buy               32.83 0.23          32.60             2.34             14.02               13.92
buy               32.76 0.23          32.53             2.34             13.98               13.89
buy               32.69 0.23          32.46             2.34             13.95               13.86

This gives you an idea of what your trades will look like. You'll want to split up your XCH into 2.35 size coins. You'll want to split your wUSDC.b coints into ~33 USDC coins. For ease of use, I might suggest going even smaller, like 1/3 the size of the required coins. Something like 1.25xch & 10USD sized coins for this example.

Step 5 - Split Coins

Split your coins from the data above. This helps with offer creation. You'll need at least the same number of available coins as you have put in your quote depth. But more coins is better in this case.

Find XCH Coin ID

chia wallet coins list -i 1

Coin ID: 0x93d10a7e8837c8572b2941736b2b9a8887ad2698b5e4ca701d7d971ef39f3b01                                                      Address: xch1cpnahpdtqdu7k9cvprc6c0ug7apaz0dk7hw0nl5enfw0mnhvnc5sbbvn Amount: 100  (100000000000000 mojo), Confirmed in block: 5901656

You'll copy the coin id to do the split. For ease of demonstration we'll split 100 XCH into 200 0.5 XCH coins.

chia wallet coins split -i 1 -n 200 -a 0.5 -t 0x93d10a7e8837c8572b2941736b2b9a8887ad2698b5e4ca701d7d971ef39f3b01  

Repeat this process for your CAT coin.
Details can be found here: (https://docs.chia.net/wallet-cli/#coins)

Step 6 - Run the AMM

Run Start-TradingBot with a Config and QuoteDepth.

Warning

This script reads your total XCH to determin how to price your next sale. Only run 1 trading bot per PC/Wallet/VM. If you have extra XCH in your wallet, the pricing infrormation will be incorrect.

Caution

The only coins in the wallet should consist of the trading pair you wish to trade. Only 1 Trading Pair per PC/Wallet/VM.

Start-TradingBot -Config $Config -QuoteDepth 20

Use Splash instead of dexie

Start-TradingBot -Config $config -QuoteDepth 20 -SplashEndpoint http://127.0.0.1:4000