RocketArb for closes
General Information
What is the nature of the proposed bounty?
This is meant to replace the functionality in BA022310, which I’d suggest expiring.
There appear to be two challenges in the way of completion for that bounty. The first is the incentives are not so great. When it was created, the incentives were a bit under $5k. Now it’s a bit over $1k. The second is the requirement to have it be a smartnode add-on. @ramana is a very likely contributor, eg, but they are not terribly familiar with the smartnode, so this is an added burden there.
This bounty will cover a tool that can do 2 things:
- Given rETH and an exited minipool: bundle a distribute and a rETH burn to get the full protocol price for the rETH for at least the ETH distributed from the minipool exit
- Given an exited minipool: bundle a flashloan for rETH, a distribute, a rETH burn to get the full protocol price for the rETH, and using the ETH to pay back the rETH with some profit ETH remaining if there’s a discount
There should ideally also be a small amount of guidance:
- Explaining the 2 forms of closing arb (lock the profit in by prebuying rETH, or avoid the need for capital but take on a risk that the discount closes during the exit time period)
- Stretch: Show how long exit time would be for a users validator
I considered making a second bounty for a smartnode add-on. I will probably do so once the functionality exists for both exit and deposit, at which point that can be purely an integration bounty.
Why are you writing this bounty proposal?
In addition to “it hasn’t gotten done and would be nice to have”, we are currently seeing an active need for such a tool to make things easier for folks. Right now only superusers really have the know-how to bundle with FB or by using a Safe.
Benefit
| Group | Benefits |
|---|---|
| Potential rETH holders | More robust peg vs discount |
| rETH holders | More robust peg vs discount |
| Potential NOs | Potential for revenue in a specific scenario |
| NOs | Potential for revenue in a specific scenario |
| Community | A stronger peg makes a stronger product that we can be proud of and market better |
| RPL holders | A stronger peg makes TVL easier to acquire, which helps RPL value |
Which other non-RPL protocols, DAOs, projects, or individuals would stand to benefit from the bounty being successfully completed?
None
Work
What steps would be entailed in completing the bounty? Do successful examples of such work exist elsewhere? What skillsets or knowledge will be required?
I think this would need a small contract to help bundle the actions? Similar work has been done for rocketarb for new minipool deposits.
Worth noting – if the same results can be achieved some other way (eg using an existing multicall contract rather than a custom contract), that should qualify for the payout. If the result damages usability (eg, only applies to people with a Safe withdrawal address), then it should not qualify for this payout.
What advice would you give a bounty hunter working on this bounty?
Should the output of this bounty be available under an open source license?
Yes
Costs
How much do you think the completion of this bounty worth to Rocket Pool (in USD)?
Probably quite a lot. $10k is my initial thought. I might suggest having it as something like $9k for the functionality and basic UX and $1k bonus for going above and beyond (eg: guidance on what validators to exit, really friendly UX, that sorta thing).
How much work will be needed to verify this bounty has been completed? What skillsets or knowledge will be required?
If the contract is open source and there is a real run that has occurred, it should be pretty straightforward.
Structure
How would you structure this bounty, and why?
A single payout to single team on completion?
Is this bounty repeatable?
No.
Are there any reasonable circumstances under which this bounty should be withdrawn? Should it expire?
I think it should expire after ~3 months. If it’s not getting done, we need to revisit why.
Conflicts of Interest
Does the person or persons proposing the bounty have any conflicts of interest to disclose? (Please disclose here if you are a member of the GMC or if any member of the GMC would benefit directly financially from the successful completion of the bounty).
No.
Will the applicant, or any protocol or project in which the applicant has a vested interest (other than Rocket Pool), benefit financially if the bounty is successfully completed?
No.