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@ -128,6 +128,14 @@ A generalized liquidation-mitigation lending and borrowing NFT product.
### Hiding Book
<br>
<img width="985" alt="Screen Shot 2022-03-27 at 6 12 10 PM" src="https://user-images.githubusercontent.com/1130416/160285641-3639f584-55af-4e0f-b85e-25d84f933bd6.png">
<br>
* Off-chain orderbook that hosts virtualized orders only filable by KeeperDAO keepers: single-connection access to the entire spectrum of on-chain and off-chain liquidity.
* The hiding book can act as an order relay, or a virtual mempool.
* Integrating the hiding book offers imit orders for dapps with benefits like ROOK rewards, MEV protection, and access to KeeperDAO's keepers.
@ -167,13 +175,84 @@ A generalized liquidation-mitigation lending and borrowing NFT product.
* *release*:
* once the lock ends, a new auction can begin
### Reputation
* KeeperDAO uses a proprietary reputation algorithm that's a simple scoring system based on actions performed by keepers.
* reputation values are fed to the coordinator's greenlight algorithm to help select the winnter of an auction
### Greenlight algorithm
* bid quantity (the higher the better)
* reputation
* randomness
* fill quantity (larger fill quantities)
* staked ROOK quantity (the more the best)
<br>
<img width="985" alt="Screen Shot 2022-03-27 at 6 12 10 PM" src="https://user-images.githubusercontent.com/1130416/160285641-3639f584-55af-4e0f-b85e-25d84f933bd6.png">
---
<br>
## How Market Makers benefit
<br>
* KeeperDAO provides arbitrage as a service (using the Rook Network)
* KeeperDAO is the most convenient, secure, and profitable network for on-chain market makers:
* 1) one single integration to access all DeFi and CeFi liquidity: orders will be arbitraged against KeeperDAO users, other market makers, Uniswap, Curve, Balancer, Bancor, Binance, etc...
* 2) KeeperDAO provides market makers with three different profit mechanisms: i) capture spreads or hedge fills, ii) earn arbitrage rewards in ROOK on every trade, 3) weekly pilot program rewards
* Before KeeperDAO, DeFi asked market makers to execute their own trades, meaning they had to navigate gas, fees, liquidity, bridging, routing, L2s, settlements, MEV.
<br>
<img width="950" alt="Screen Shot 2022-03-27 at 8 58 52 PM" src="https://user-images.githubusercontent.com/1130416/160292233-685b42de-aa3d-412e-afa4-be811a8b664b.png">
<br>
### MM integration guide
* [APIs and code here](https://docs.keeperdao.com/reference/integrate/run-a-market-maker/automated-trading)
<br>
---
<br>
## Running a Keeper
<br>
### Example keeper bot technicuqes
* DeFi arbitrage, cross the user with Uniswap or other on-chain DEX
* CeFi arbitrage, cross the user with Coinbase, etc
* Liquidation facilitation
* Front running, tailgating, etc.
* Keepers can also fill a user's order
<br>
<img width="495" alt="Screen Shot 2022-03-27 at 9 24 22 PM" src="https://user-images.githubusercontent.com/1130416/160293080-c1fc9881-f09f-4b64-b41d-6180c3ade8fd.png">
<br>
### Keeper bot architecture
* a keeper bot: integrated with the coordinator and hidingbook components
* Coordinator websocket server: keepers connect and communicate with the coordinator using this server. When they find arbitrage they place a bid via web sockets noting the specific order/liquidation. The coordinator prevents gas auctions and bad behaviors, and broadcast the winner of the auction letting the greenlit keeper know they can take the order/liquidation. The keeper can then capture the arbitrage or MEV they way they like (mempool, flashbots, eden, miningdao, etc).
* Coordinator http server: keepers provide and gather critical info from this server (must register their addresss with the coordinator)
* HidingBook http server: the orderbook containing user order only fillable by whitelisted KeeperDAO keepers.
* HidingBook websocket server: keepers listen to real time order update events using this endpoint. This ensures they get orders as soon as they are posted and know when the order is filled or expired.