Staking on Argent, open-source market making bot (ZigZag/ZkSync)

Liquid Staking Experience
1

Hey :blush:

Few days ago, I’ve developed a quick and dirty bot to provide liquidity on ZigZag(ZkSync L2), and I managed to list rETH on Argent L2 :clap:

To ensure that I am not the only source of liquidity, I have released my bot publicly, it is only slightly tested and was developed between two other projects, so be careful.

If you have any questions/issues, don’t hesitate!

What do you think about trying to be listed on Deversifi too ?
Deversifi has a great chance to be the gateway to a lot of people for the StarkNet ecosystem, this could be a huge opportunity for us.

7 Likes
2

Thanks for helping to run this! Are you able to share more about what it means to do this?

ie.

  • economic impact to market maker (profitability / loss)
  • SLA for the bot, consequences if it goes down
  • any other risks involved

Having this information readily available can encourage more people (who are new to MM bots) to run the bot as well

1 Like
3

Hi,

The only inventory management(IM) risk when you provide liquidity on rETH/ETH is the gas fee to refuel your L2 position(Withdraw from L2, Swap/deposit on Rocketpool (r)ETH, deposit on L2 again).
There is also an opportunity risk, if your spread is less than the yield you would have if you simply hold rETH.
There is no IM risk of being offline (low volatility).

The two major risks are ZKsync smart contracts(bridge, validity proof), and of course my bot implementation.

1 Like
4

If gas fees were the main reason your bot instance was paused, would the reduced gas fees after the Ethereum merge event then incentivise this bot to resume?

5

The main issue is the lack of rETH due to imbalance between offer and demand, so I can only bough rETH on secondary market but the the premium I will paid would make me sell at loss on ZigZag :confused:

1 Like
6

Bummer, maybe this can help:

https://dao2.rocketpool.net/t/staging-pool-add-any-arbitrary-amount-of-eth-to-the-deposit-pool/418?u=balupton

I’ve also gone and proposed the pair on the zigzag proposals forum:

https://forum.zigzag.exchange/d/12-rocket-pool-reth

1 Like
7

gas fees won’t drop after the merge. The reason that everything will get cheaper on ethereum will be due to utilizing sharding via shard chains. Those chains are looking to use ZKroll-ups, which will allow cheaper fees on L2, because it can aggregate a LOT of transactions into a single transaction/validation on L1 after the merge.