Unleash Lightning Fast Trading: Dfyn’s Botathon is Your Chance to Take DeFi Trading to the Next Level

Dfyn Network
5 min readMar 6, 2023

Have you ever wondered how far you can push the limits of a decentralised exchange? If you’re a builder or a trader seeking to explore the depths of DeFi to maximise your output, then this announcement is just for you.

We’re excited to announce the launch of a first-of-its-kind DeFi Botathon. If you’re already leveraging bots to make automated and profitable trades in the DeFi space, then why not join us and build a bot that can automate trading strategies in Dfyn V2 to maximise your profits? By participating, you’ll also have a chance to claim your stake in a prize pool of approximately 250,000 $DFYN.

At Dfyn Botathon 1.0, we’re encouraging users to leverage arbitrage opportunities and flash loans offered by Dfyn V2 to capture lucrative profits. So get ready to participate in this contest, which will begin on 21st March 2023 and run for 12 days.

The selected trading pairs for the BOTathon are — ROUTE/USDC and DFYN/USDC.

The contest is divided into three categories, each with different metrics to judge your bot’s efficacy. In each category, the top three position holders by profitability and the top five position holders by the number of transactions will win exciting rewards. So why wait? Join us for the Dfyn Botathon 1.0 and discover the exciting potential of DeFi trading automation.

Categories

Category #1: Flash Loan Bots

In this category, participants will need to create a contract that leverages Dfyn’s flash loan capability to get capital to make profitable trades in the ecosystem. You can check out our sample contract for reference here.

Judgement Criteria

As a participant, you need to optimise your bot to maximise these two metrics:

  1. Absolute Profit: This will be measured by calculating the total profit made by the bot during the Botathon. For e.g., you start with a fresh smart contract with some initial capital to pay the flash loan fee. At the end of the Botathon period, your profit will be calculated as the amount left in your contract — the initial capital in the contract.
  2. No. of transactions: This will be measured by calculating the total number of transactions executed by the bot over the given time period.

Category #2: Liquidity Range Adjusting Bots

Dfyn V2.0 works on the concept of concentrated liquidity. If you’re new to this concept, check out these Twitter threads we posted recently to give you an understanding of how Dfyn works on the backend:

In the Botathon, your task is to create a bot that will update the liquidity range on the concentrated liquidity curve to maximise the fee accrual. Here are our sample scripts to help you get started.

Judgement Criteria

As a participant, you need to optimise your bot to maximise these two metrics:

  1. Unit Profitability: The profitability of this bot will be judged based on the profit generated by it per unit of liquidity (in USD) added to the curve.

E.g. You took a fresh account and added 100$ worth of liquidity into a liquidity pool. At the end of the Botathon, let’s say, you end up with 20$ worth of fees while incurring 5$ in total gas costs to update the liquidity range. The profitability for this bot will be = (20–5)/100 = 0.15

2. No. of transactions: This will be measured by calculating the total number of transactions executed by the bot over the given time period.

Category #3: Arbitrage Bots

To participate in the Botathon via this category, you’ll need to create a bot that can conduct cross-DEX, cyclic/triangular, and CEX-DEX arbitrage to accrue maximum profits for selected trading pairs.

Judgement Criteria

As a participant, you need to optimise your bot to maximise these two metrics:

  1. Unit Profitability: This will be measured as the total profit made by the bot per unit of trading volume (in USD).

Here, “i” signifies the ith trade and n signifies the total number of trades made by the bot.

2. No. of transactions: This will be measured by calculating the total number of transactions executed by the bot over the given time period.

Reward Structure

The rewards for different bot categories are as follows:

Rewards will be given out in $DFYN tokens.

Important Notes

  1. Before we move forward, it is imperative to share with you that we will use your wallet/contract balance as a metric to track daily ranking. So to take part in this contest, you’ll need to create fresh wallets/contracts and restrict them for bot use only.
  2. For a CEX-DEX arbitrage bot, you will have to submit a CSV file listing all your CEX trades for the given pair, along with a screen recording of your transaction history to help us verify your trades.
  3. To be eligible for rewards, a bot has to perform a minimum number of trades:
  • Flash Loan Bot: a minimum of 240 transactions over the period of 12 days
  • Liquidity Range Adjusting Bot: a minimum of 120 transactions over the period of 12 days
  • Arbitrage Bot: a minimum of 180 transactions over the period of 12 days

4. The pairs on which the bots will be eligible to run will be shared near the competition start date, i.e. 21st March 2023.

5. The competition will start on 21st March 2023; i.e. transactions from 21st March will be considered for the Botathon. It is advised that users start building, testing and optimising their bot well in advance so that they have a working bot by this date.

Technical Details

Here are a few technical details that you need to keep in mind while building your bot:

  • Bots should be built to use our Dfyn v2 platform
  • Scripts can be developed using python, solidity (for contract-based bots), or any JS framework
  • Here are the contract details and developer docs to help you get started

Fill out this short FORM to finalise your candidature in Dfyn V 2.0’s Botathon right now!

Please Note: If you’re creating multiple bots, then fill the form multiple times as well.

About Dfyn

Dfyn is the world’s first on-chain limit order DEX. It combines the power of an RFQ matching engine with a concentrated liquidity AMM.

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Dfyn Network

Dfyn is the world’s first on-chain limit order DEX. It combines the power of an RFQ matching engine with a concentrated liquidity AMM.