Market Maker Reference Implementation

Hxro Network contributors have released open-source implementation code for a market maker on Hxro Dexterity perpetual, zero-day, and expiring futures contracts.

Disclaimer: Unaudited Software - No Liability - As-Is Use

Trading on Dexterity is not allowed in the US and other jurisdictions; you could lose all your money and more with this script.

Please be advised that this software is provided on an "as-is" basis and has not undergone any formal auditing by third-party organizations. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of this software for any purpose. Any reliance you place on such information or use of this software is strictly at your own risk.

We disclaim all liability for losses, damages, or negative consequences you may incur due to the use or misuse of this software, including but not limited to financial loss and data breaches. It is strongly advised that you consult with qualified legal and financial professionals before making any decisions related to the use of this software.

By using this software, you acknowledge that you could potentially lose all your money, data, or other assets, and agree that we will not be liable for any such losses or damages under any circumstances.

Getting Started

Requirements

1. git

2. node version >= 18

3. (optional) yarn; if you don't use yarn, replace "yarn" with "npm" in all the following commands

Lookup how to install git. NVM manages node installations for you.

First-Time Setup

# clone the source code for this market maker
git clone [e-mail]:Hxro-Network/dexterity-mm.git
cd dexterity-mm

# select a node version of at least 18
nvm use 18

# install it
yarn install

Running the MM

1. You must create a trading account (TRG) and deposit funds before running this script.

2. Place the private key that owns your TRG inside the cloned dexterity-mm directory. It must be named my_key.json. (Or modify the script to accept it as an environment variable).

3. Run the MM with desired parameters

The MM quotes around the index price of each product on a Dexterity Market Product Group (MPG).

The MM has the following parameters, which are set via environment variables:

Key	Default	Description
RPC	http://localhost:8899/	-
MPG	Bluechip MPG (see below)	Public key of the Dexterity markets (MPG).
TRG	-	Your trading account public key.
QUOTE_PERIOD_MS	5000	How many milliseconds between updating quotes
CANCEL_PERIOD_MS	60000	How many milliseconds between verifying there are not more than MAX_ORDERS_RATIO * 2 * NUM_LEVEL orders (and cancelling all if so)
NUM_LEVELS	5	Number of levels to quote per side of each book
BPS	100	"Radius from index price to begin quoting at, specified in basis points"
INTERLEVEL_BPS	100	Number of basis points between levels on the same side of the book
QTY_NOTIONAL	5	Notional dollar value of lot sizes (using index price)
OFFSET_BPS	0	Offset from index price in bps (to quote around) (can be negative)
MIN_BPS_TO_REQUOTE	50	Minimum price movement in BPS before replacing quotes
MAX_ORDERS_RATIO	2	Verifies there are not more than MAX_ORDERS_RATIO * 2 * NUM_LEVEL orders (and cancels if so) (see CANCEL_PERIOD_MS)
MIN_HEALTH_RATIO	0.1	Minimum ratio of excess initial margin to portfolio value (cancels if too low) (see CANCEL_PERIOD_MS)
PRODUCT_NAME_FILTER	''	Only make on products with names that include this substring
DRY_RUN	'false'	If 'true', do not send transactions to the blockchain
COMBOS_QUOTE_INDEX_PRICE	'false'	If 'true', quote combos around the weighted sum of the index prices of the legs, rather than the midpoints of the legs

Set your environment variable and run the mm with yarn start. For example:

RPC=REPLACE_WTIH_URL_OF_YOUR_RPC TRG=REPLACE_WITH_TRG_PUBKEY yarn start

BLUECHIP: 4cKB5xKtDpv4xo6ZxyiEvtyX3HgXzyJUS1Y8hAfoNkMT

BROWNCHIP: BRWNo8b8PhBPicdw7c9qfA5ErZtQzHJrPpFjVnDw2Dso

STAKECHIP (LSTs): LSTqd6kXfMcMmVj63TdFfXvwSEYSkQVcT6GrwH4Ki3h

Also available on GitHub