The solution to execute decentralized margin trading on DEXes.
It works with:
- Uniswap (exchange)
- MakerDAO (lending protocol, Mainnet only)
- Compound V2 (lending protocol, Rinkeby only).
More DEXes and lending protocols are coming.
THIS SOFTWARE IS NOT AUDITED AND NOT READY FOR PRODUCTION USAGE. USE IT AT YOUR OWN RISK.
In this guide, we will open a long ETH positions with DAI as an owed token.
Other token pairs will come once Compound v2 will be released to Mainnet.
- OS: Mac OS or Linux
- Ethereum account with initial deposit in ETH
- Seth command line tool, with access to the abovementioned account. Seth docs can be found here
You can install Seth with those commands:
curl https://dapp.tools/install | sh
. "$HOME/.nix-profile/etc/profile.d/nix.sh"
In order to enable seth to operate your account, you need to put a json keystore file that corresponds to ETH_FROM address in ~/.ethereum/keystore folder.
If you don't have this folder, you can create it with the next command:
mkdir -p ~/.ethereum/keystore
The easiest way to obtain json keystore file is to create a new account on https://www.myetherwallet.com/ or https://mycrypto.com/.
After you put a keystore file into this directory, you can run seth accounts command to ensure that seth managed to parse the file. If everything is ok, you will see ETH_FROM address in the output.
After the installation of seth, it's needed to specify default parameters in .sethrc file in your $HOME folder. If you don't have one, please create a new .sethrc file inside $HOME folder. You can do it in any text editor, like nano.
Here you can find an example of .sethrc file with Seth settings:
export ETH_FROM=<your address>
export ETH_GAS=3000000
export ETH_GAS_PRICE=5000000000 # 5 GWei, please adjust it if transactions are slow
export SETH_CHAIN=ethlive
export ETH_KEYSTORE=~/.ethereum/keystore
Please note that you need to set SETH_CHAIN variable according to the network that you are going to use (ethlive or rinkeby).
All commands in a code block can be executed in bash shell
1.1 Predefined variables and functions can be loaded from artis-makerdao-mainnet.sh or artis-compoundv2-rinkeby.sh files, depending on protocol and network that you want to use. Those files can be found in the root folder of this repo.
$ source artis-makerdao-mainnet.sh
Or
$ source artis-compoundv2-rinkeby.sh
If you used CDP portal before, you most probably already have a proxy wallet, and you can use it for Artis.
# check if you have proxy wallet, assossiated with your address
$ seth call $PROXY_REGISTRY "proxies(address)(address)" <your address>
If this command return non-zero code, it's a DS_PROXY address, that you can use for further actions.
If you don't have a proxy wallet, you can create a new one. Don't forget to transfer some ether to ETH_FROM address, so you can send transactions from it.
$ seth send $PROXY_REGISTRY "build()"
You will be promted to enter a password for the keystore file.
To to obtain newly created DS_PROXY address, you can execute the next command:
$ seth call $PROXY_REGISTRY "proxies(address)(address)" <your address>
$ DS_PROXY=<address of proxy wallet from the previous step>
Minimum supported value: 0.01 ETH
$ AMOUNT=1.1 # specify desired value
Smaller values will give you more leverage, however, they give you more risk of liquidation: in case if ETH will go down relatively to DAI and your initial deposit becomes too small to cover minimal collateral ratio and your initial deposit will be seized.
Minimal amount for Mainnet: 1.5 (very risky). Recommended amount: 1.7
Minimal amount for Rinkeby: 2. Recommended amount: 2.1
Max theoretical leverage table (exchange fees and interest are not included in this calculation):
| Leverage | Collateral ratio |
|---|---|
| ~3 | 1.5 |
| ~2.6 | 1.6 |
| ~2.4 | 1.7 |
| ~2.2 | 1.8 |
| ~2.1 | 1.9 |
| ~2.0 | 2.0 |
$ COLL_RATIO=1.7 # specify desired value
Transaction will go through your proxy wallet, so the calldata needs to be formed manually
# Calculate function signature
$ SIG=$(seth sig "openPosition(address[4],uint256[4])")
# Form calldata for Artis contract
$ CALLDATA="$SIG$(toArg $LENDER)$(toArg $EXCHANGE)$(toArg $HELD_ASSET)$(toArg $PRINCIPAL)$(toRawAmount 0 eth)$(toRawAmount $COLL_RATIO eth)$MAX_ITERATIONS$MIN_COLLATERAL_AMOUNT"
# Send transaction to your proxy wallet
$ seth send --value $(seth --to-wei $AMOUNT eth) "$DS_PROXY" "execute(address,bytes memory)(bytes32)" "$LEVERAGER" "$CALLDATA"
You will be promted to enter a password for the keystore file.
You have an open long ETH position and executed all steps from the previous part
Every position has its id that needs to be specified when you want to close it.
To obtain the ID you can go to https://etherscan.io, open the transaction that opened the position -> go to Event Logs -> search for the last event and take the first data field from this event. It will be POSITION_ID.
$ POSITION_ID=0000000000000000000000000000000000000000000000000000000000000001 # specify your ID
Transaction will go through your proxy wallet, so the calldata needs to be formed manually
# Calculate function signature
$ SIG=$(seth sig "closePosition(address[2],uint256[3])")
# Form calldata for Artis contract
$ CALLDATA="$SIG$(toArg $LENDER)$(toArg $EXCHANGE)$POSITION_ID$COLL_RATIO_CLOSE$MAX_ITERATIONS"
# Send transaction to your proxy wallet
$ seth send "$DS_PROXY" "execute(address,bytes memory)(bytes32)" "$LEVERAGER" "$CALLDATA"
You will be promted to enter a password for the keystore file.
All assets and loan ownership stays on your proxy wallet, Artis smart contracts are used as bytecode and do not store any state or assets. Therefore you can manage the underlying loan with some 3rd party tools. With MakerDAO as the underlying lending protocol, you can manage a CDP with the help of CDP portal. For example, you may top-up your collateral or view the liquidation price.
You can also use MakerDAO protocol explorers, like LoanScan to see all the transactions that executed under the hood and see your CDP balance and collateral supplied.