Liquidation Station

Much of the contemporary defi protocols depend on bot operators to perform various tasks in order to ensure that actions get taken when required. The operators are incentivized by the reward they receive, however, the environment is extremely competitive which inevitably leads to scenarios where only those most skilled and well equiped can participate. Not only does this lead to centralization which diminishes fault tolerance, the software that these operators run is often a black box to those whose protocols rely on it.

We take the opposite approach in our multi-agent application, where we incentivize collaboration by securing off chain computation using Tendermint. Doing so all state transitions during off chain computation require consensus. After a complete iteration the final transactions to liquidate are submitted on-chain (polygon mainnet). The agents share a multisig wallet and the rewards are distributed evenly, where operators that perform better get rewarded more, and those that do not contribute can be removed from the set of active participants if so decided by majority consensus, in order to allow the system to be purged from parasites that will inevitably arise.

These liquidation fees and subsequently used in the Rysk Roller skill, which the agents use the trade using the Wheel Options Strategy. By utilizing the Wheel Strategy, Rysk Roller aims to capitalize on market opportunities while maintaining a balanced and fully collateralized position. We developed a smart contract that provides access to the necessary methods on various smart contracts of Rysk, Opyn and Gamma Protocol This allows for additional income generation through options premiums.

The application is build on top of the open-autonomy framework. This allows us to define a multi-agent system secured on chain, using the Autonolas stack.

Live Deployments

The application is currently deployed on Digital Ocean pending deployment to;

app.propel.valory.xyz

Live endpoints are available for the frontend;

frontend

And for the 4 agents;

curl @165.22.80.193:8000
{"state": {"name": "liquidation_station", "address": "0x6Af19cF073B399740Bc664bb7E908099f222E306", "round": "prepare_liquidation_transactions_behaviour"}}

Running as a multi agent service

First setup the env;

export INFURA_API_KEY=secret
export POLYGONSCAN_API_KEY=secrets
# make some keys
autonomy generate-key ethereum -n 4
# set your author
aea init --remote --reset --author eightballer --ipfs
autonomy packages sync

bash scripts/start_multi_agent.sh

## Running a single agent locally


### Dependencies
- Tendermint

```bash
wget https://github.com/tendermint/tendermint/releases/download/v0.34.11/tendermint_0.34.11_linux_amd64.tar.gz

tar -xf tendermint.tar.gz
sudo mv tendermint /usr/local/bin/tendermint

First you must create a local tendermint node to run the agent, (Do this in a seperate tab). If you have old data stored, remove that first.

sudo rm -r ~/.tendermint/data/ &&

Then start a local Tendermint node for the agent to connect to

sudo tendermint init validator && sudo cp -r /root/.tendermint ~/  && sudo chown -R (whoami):(whoami) ~/.tendermint
tendermint start

Finally, the agent can be fetched and ran using the script provided

poetry install && poetry shell
autonomy packages sync

make run-single-agent

In case you already have an existing folder from a previous deployment you may have to remove it first.