Welcome to the April edition of the KeeperDAO monthly development update. There is a lot to share with updates to the Hiding Game, the impending release of kCompound, and new information about the Coordination Game.
Community in April
Hiding Game user volume is growing rapidly:
- $26,273,380 Hiding Game user volume (last 7 days)
- $79,643,316 Hiding Game user volume (last 30 days)
- $81,430,000 KeeperDAO treasury value, up over $30 million since our March update
Earn ROOK by integrating with the Hiding Game
Market makers can provide liquidity to the Hiding Game by using their bots to submit orders to the Hiding Book.
Integrating with the Hiding Game is also an easy way to integrate with all the top DEXes without having to write the integration code yourself. After integrating with the HidingBook, sign your order and the rest of the execution is handled by KeeperDAO Keepers. Executed trades earn ROOK while capturing spreads, essentially capturing two spreads simultaneously.
If you’re interested in MEV or have ever wanted to be involved in a DAO, come join us on the KeeperDAO Discord server. We recently announced our grant program, and there’s still time to make proposals and join in the discussion.
Hiding Game Updates
The instant price (previously referred to as Instant Fill) feature is currently undergoing final testing.
This feature allows users to ask Keepers for a suggested instant execution price for a particular trade. Users can adjust the price up or down based on whether they want to be patient and get a better price, or execute immediately with a minimal arbitrage reward. Instant Price involves the HidingBook backend making calls to a Keeper bot and requesting a price quote.
Profit Algorithm Upgrade
We’ve upgraded our entire profit algorithm to make Instant Price a reality. Normally, keepers only care about maximizing profit based on specific onchain conditions. The instant price feature completely turns that assumption inside out. Instead, a user can say “I’d like to trade 1,000 DAI for ROOK, right now” and the keeper needs to determine what is the most profitable path to that trade, and what the best price is on that path. The algorithm for this was very fun to implement and it is exciting to see it in action soon.
After writing the Instant Price algorithm, we also optimised the profit maximising algorithm which we use for determining the exact amount of tokens to trade during a given arbitrage opportunity. It is more efficient and more accurate.
Our keeper is now significantly more likely to fill user orders all the way up to 99.99% or greater. In the past, we targeted a ~99% fill, which led to some fills being between 98.X% or 99.X%, leaving users with undesirable amounts of dust. This should now happen far less often, and we plan to iterate on this further in the future.
The Hiding Game Keeper Integrations
Continued integrations allow our Keeper Bot to further improve trade routing and efficiency.
The 1inch integration is completed and is currently being tested in production.
Work has begun to allow our keeper bot to integrate with Uniswap v3. Uniswap v3 adds many new features aimed at improving capital efficiency for liquidity providers. It also dramatically changes the way keepers interact with Uniswap markets, making this integration an important one for our keeper and the Hiding Game. Look for more progress in our next monthly update!
Our goal with L2s is to understand which to use for the Coordination Game. Currently we believe Optimism best suits our needs as it appears that we can build a coordinator with it. In addition, UniswapV3 will be released on Optimism and it should create the least friction with new Keepers integrating with the Coordination Game.
Hiding Game Integrations
Executed limit orders submitted through integrations will also earn the users ROOK as per the distribution guidelines.
kCompound has passed its Quantstamp audit and is on track for a May launch. Expect an announcement from Quantstamp soon regarding this.
The launch of kCompound will introduce new features for borrowing to the KeeperDAO app. Along with our liquidity pools and trading features, we felt this was a good time to refresh the app’s UX.
We’ve incorporated some of our community feedback and are continuing to iterate on the design so enjoy this sneak preview of how things are coming along.
Coordination is Coming
Last, but not least, we’re excited to announce that we have finalised the design of the Coordination Game and are moving forward with implementation.
The Coordination Game provides a simple goal-orientated ecosystem in which Keepers can thrive without the arms race of a predatorial gas auction. It enables Keepers to specialise in trades that best suit their capabilities while also incentivising trades through new or less-travelled paths. Keepers can safely turn off their bots for upgrades, maintenance and bug fixes without degrading the user experience. Keepers can also run multiple bots and have them coordinate efficiently on arbitrage, liquidations, or even market making.
Over the past year, we’ve studied many different approaches to coordinating Keepers and we believe that our implementation is by far the best. It will bring utility to the ROOK token, provide structure for Keepers, promote efficiency, and incentivise good behaviours while disincentivising bad. It will also enable Keepers to leverage Layer 1, Layer 2, CEXes, OTC, and potentially other blockchains.
The Hiding Game will embrace a variety of actors who perform a variety of services which ultimately lead to a healthy user experience. We expect automated traders to thrive when coordinating within the Hiding Game.
The KeeperDAO team are very excited about these developments, and we look forward to sharing more with you soon™.