coinrabbit.io started as a programming project focused on inter-exchange arbitrage (taking advantage of price differences between multiple exchanges). The BTC-XLM ticker was simultaneously traded at Binance, Bittrex, Poloniex, Kraken, and Cex. The trades were programmatically executed utilizing the application interface (“API”) exposed by each exchange. In addition to arbitrage, a basic market-making algorithm (taking advantage of the bid/ask price spread) was implemented. The trading results were profitable and encouraging for further development.
The BTC-XLM ticker was chosen based on an investment preference to hold these assets at a 1:2 ratio. A balancing algorithm was implemented to maintain this asset ratio and trigger balancing trades in the event of one-sided arbitrage attempts (dropped trades). Additionally, an algorithm was created to automatically transfer assets between exchanges when the asset balances were consumed by multiple one-way arbitrage attempts. The code is available for review at https://github.com/coinrabbit. Note that the code is currently being refactored to allow for multiple users on the coinrabbit.io platform.
Excited to learn that the Stellar Build Challenge is interested in trading bot submissions, this project is being expanded to provide public access to its functionality. Here is the plan moving forward:
Create a security layer to encrypt user’s API keys and Stellar wallets.
Build out the API for the Stellar Decentralized Exchange (“SDEX”) consistent with the API already built for the centralized exchanges (Binance, Bittrex, Kraken…).
Create a front-end user interface (web) for public access to the trading functionality. A preliminary version of coinrabbit.io will be online for review before the August 15th deadline.
For active traders and non-programmers: Build a community server to allow for common trading functions that take advantage of concurrent, multi-exchange access. For example: buy/sell on the bid/ask at the exchange with the best price; buy/sell at the exchange with the most liquidity; easily move assets from one exchange/wallet to another... The intent of the community server is to provide basic trading and wallet functionality that does not require substantial computing resources or programming experience.
For experienced programmers: Create a well documented and open-source system for developers to plug-in their own trading servers (Node.js). This will allow for the creation of resource intensive bots that won’t detract from the community server’s resources. By utilizing privately owned servers, traders can decide for themselves the level of computing power necessary for their bots. The coinrabbit.io servers will provide a basic security layer, a common API (javascript), and a web interface to operate their bots on their own exchange accounts. Experienced algorithmic traders can then focus on the trading details without fumbling the various exchange specific APIs.
For less experienced programmers: Build open source trading bots that can be easily spawned giving them instructions to tweak the trading functionality while teaching them coinrabbit’s trading API.
Common questions:
Is coinrabbit.io an exchange?
No. coinrabbit.io is an interface to trade programmatically on other exchanges including the SDEX.
Is coinrabbit.io open-sourced?
Our plan is keep the security layer closed. That being said, the community server and bot plug-in functionality will be open sourced to encourage learning the coinrabbit.io API and development of the trading ecosystem.
How will coinrabbit.io be monetized?
Initially coinrabbit.io will be free to use and funded by donation. It is our primary objective to help build out the stellar ecosystem by increasing market liquidity on the SDEX. By allowing developers to plug-in their own servers (they pay the server cost) the financial demand on coinrabbit.io will be lessened. In the future, if donations do not cover the expense of the community servers, other monetizing techniques will may be explored.
Why is this project valuable for Stellar?
Currently the SDEX has limited liquidity creating situations where inexperienced traders placing market orders on the SDEX may experience disappointing trade fills due to large spreads in the market prices; this is a hurdle to mass adoption of the SDEX. coinrabbit.io will attract market makers to the SDEX by providing a combined API that exposes the liquidity of centralized exchanges.
Who is coinrabbit.io?
coinrabbit.io is a development project started by Matthew Clarke, a licenced civil engineer and land surveyor working out of Chico, CA. Formally a programmer specializing in structural engineering systems, he became interested in the possibilities of blockchain technology and began tinkering with Dapps. In 2017 he discovered Stellar and wanted to become involved in its development. As of this year, he has put his practice as a civil engineer on hold to work full time on the coinrabbit.io project. For more information about Matthew Clarke, please visit his LinkedIn profile at www.linkedin.com/in/mclrk.
How do I contact coinrabbit.io?
@coinrabbit_io
Attn: Matthew Clarke
468 Manzanita Ave, Suite 3
Chico, CA 95926
Ph: 530-966-7469
Email: matt@coinrabbit.io
How can I donate to the project?
Please send XLM to:
GCKDHW35LAGI5OPHD2ZN3NUTYBGNHZJGXILNBSPYBUD3BNZNZXY6OTIL
