Trading Bot - Uniswap V2 Impermanent Loss Hedging 🚀

A smart contract system designed to hedge impermanent loss for Uniswap V2 liquidity providers using perpetual futures on Binance. 📈

Overview 🌟

This project implements an automated trading bot that:

• 🔄 Monitors Uniswap V2 LP positions
• 🧮 Calculates impermanent loss in real-time
• 🛡️ Manages hedging positions
• 🤖 Automatically rebalances when needed

Key Components 🏗️

• TradingBot:🎮 Main contract handling LP positions and hedging strategy
• ImpermanentLossCalculator:🔢 Calculates IL and optimal hedge positions
• PriceCalculator:💹 Handles price calculations and TWAP
• HedgingStrategy:🎯 Implements the hedging logic and decision making

Getting Started 🚦

Prerequisites 📋

• Foundry 🛠️
• Node.js (v14 or higher) ⚙️
• A wallet with some Sepolia ETH for deployment 💰

Installation 📥

# Clone the repository
git clone https://github.com/yourusername/trading-bot-hedging.git
cd trading-bot-hedging

# Install dependencies
forge install

Configuration ⚙️

Create a .env file :

PRIVATE_KEY=your_private_key_without_0x
RPC_URL=your_sepolia_rpc_url
ETHERSCAN_API_KEY=your_etherscan_api_key

Deployment 🚀

Deploy all contracts to Sepolia testnet:

forge script script/Deploy.s.sol:DeployScript --rpc-url $RPC_URL --broadcast --verify

Contract Addresses (Sepolia) 📍

📝 ImpermanentLossCalculator: 0x426638105fbd5B246068DF0cA672366b50255820 🧮 PriceCalculator: 0xEBD5B476aEd1a7f8301575270D75edefA0dbFf5E 🛡️ HedgingStrategy: 0xda4E73cfED29b817BE36A07bd82958BF9322f74a 🤖 TradingBot: 0x1bce275dC0f3bDe0e96B60fDe8f4dE12a4dEaBbd

Usage 🎮

Opening a Position 📈:

cast send $TRADING_BOT_ADDRESS "openPosition(uint256,uint256,uint256)" \
    $TOKEN0_AMOUNT $TOKEN1_AMOUNT $MIN_LIQUIDITY \
    --rpc-url $RPC_URL --private-key $PRIVATE_KEY

Checking Rebalance Status 🔍:

Copycast call $TRADING_BOT_ADDRESS "checkRebalance()" --rpc-url $RPC_URL

Closing a Position 📉:

Copycast send $TRADING_BOT_ADDRESS "closePosition(uint256,uint256)" \
    $MIN_TOKEN0 $MIN_TOKEN1 \
    --rpc-url $RPC_URL --private-key $PRIVATE_KEY

Testing 🧪

Run the test suite:

Copyforge test

With verbosity for more details:

Copyforge test -vv

Architecture 🏗️

graph TD
    A[TradingBot] --> B[ImpermanentLossCalculator]
    A --> C[PriceCalculator]
    A --> D[HedgingStrategy]
    B --> E[Uniswap V2 Pool]
    C --> E
    D --> B
    D --> C

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Security 🔒

This project includes several security features:

🛡️ Reentrancy protection 🔐 Access control ✅ Input validation 🔰 Slippage protection

⚠️ However, this is experimental software and should be used with caution.

Contributing 🤝

1. 🍴 Fork the repository
2. 🌿 Create your feature branch (git checkout -b feature/amazing-feature)
3. 💾 Commit your changes (git commit -m 'Add some amazing feature')
4. 🚀 Push to the branch (git push origin feature/amazing-feature)
5. 🎯 Open a Pull Request

License 📜

This project is licensed under the MIT License - see the LICENSE file for details. Acknowledgments

Acknowledgments 🙏

🦊 OpenZeppelin for secure contract implementations 🦄 Uniswap V2 for DEX infrastructure ⚒️ Foundry for development framework