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Strategies & Scripts

Now that you have properly installed, tested, and configured Gateway, it's time to run a bot that calls the Gateway DEX endpoints.

You can either run the AMM-Arbitrage Strategy, or the sample Scripts that utilize Gateway if you want more fine-grained control.

Approval needed!

Currently, if any tokens do not have sufficient allowance, both strategies and scripts will not start and the logs will show messages like [connector] is not ready. Please wait... continually. See Approving tokens for information on how to approve tokens.

AMM-Arbitrage Strategy

A good way to safely test Gateway is to run the AMM-Arbitrage strategy between a testnet DEX connector and a CEX connector in paper trading mode.

The guide below shows you how to run this strategy using the uniswap-ethereum-goerli connector versus the binance-paper-trade connector.

Setup

  1. Connect a wallet to Uniswap Sepolia with gateway connect uniswap. Afterwards, you should be able to see uniswap_ethereum_sepolia when you run balance.

  2. Convert some test ETH into WETH and DAI on Uniswap.

  3. Approve both WETH and DAI - see Working with Tokens for more details.

  4. Make sure that your wallet still have a balance of at least 0.2 test ETH for gas costs.

  5. Check your paper trading balances with balance paper and add balances for ETH and USDT if needed.

Create strategy

Use create command to set up an amm_arb strategy. Answer the question prompts presented to generate the following configuration:

template_version: 5
strategy: amm_arb
connector_1: uniswap_ethereum_goerli
market_1: WETH-DAI
connector_2: binance_paper_trade
market_2: ETH-USDT
min_profitability: 1.0
market_1_slippage_buffer: 1.0
market_2_slippage_buffer: 0.0
concurrent_orders_submission: false
debug_price_shim: false
gateway_transaction_cancel_interval: 600

Alternatively, you can copy the section above into a *.yml file and use the import command to import it as a strategy.

Run strategy

Use the start command, and then answer Yes when asked to confirm the strategy settings.

After starting the amm_arb strategy, you’ll see the apparent prices on the AMM market will track the prices on the CEX exchange, and if there is none, the strategy will report no arbitrage opportunities.

When it detects an arbitrage opportunity where the total cost to execute the transactions (including gas and fees) still results in a profit higher than (min_profitability), then the bot will automatically execute the two transactions.

If concurrent_orders_submission is false, then the bot will try to execute and confirm the transaction on connector_1 before executing the transaction on connector_2.

Sample Gateway scripts

You can also run the following sample Gateway scripts in the /scripts/ folder of the Hummingbot repo: