AMM Minus Strategy - Yield Optimizer with Arbitrage Detection

📋 Overview

This repository contains an automated market maker (AMM) strategy that implements a yield optimizer with arbitrage detection for the NEAR blockchain ecosystem. The strategy focuses on buying CRANS tokens using NEAR while detecting and exploiting arbitrage opportunities across different liquidity pool routes.

🎯 Strategy Description

Core Concept

• Direction: Buys CRANS tokens using NEAR
• Method: Multi-path arbitrage detection across various LP pairs
• Optimization: Yield maximization through route comparison and selection

Key Components

1. Supervisor (yieldOptimizer.tsx)

The main yield optimization engine that:

• Manages the complete trading cycle from NEAR to CRANS
• Handles circular arbitrage routes for maximum yield
• Coordinates with Ref Finance DEX
• Implements safety mechanisms and cooldown periods
• Tracks and reports profit/loss

2. Arbitrage (arbitrageDetector.tsx)

The arbitrage detection system that:

• Simulates multiple trading routes in real-time
• Compares expected returns across different LP paths
• Identifies the most profitable route for NEAR → CRANS conversion
• Validates arbitrage opportunities before execution

🛠 Technical Architecture

Trading Routes

The system evaluates multiple routes for NEAR to CRANS conversion:

Primary Routes:
- NEAR → CRANS (direct)
- NEAR → SHITZU → CRANS
- NEAR → BD → CRANS
- NEAR → SIN → CRANS
- NEAR → PUMP → CRANS

Complex Multi-hop Routes:
- NEAR → SHITZU → BD → CRANS
- NEAR → BD → SHITZU → CRANS

Circular Arbitrage Routes:
- NEAR → CRANS → SHITZU → CRANS
- NEAR → CRANS → BD → CRANS
- NEAR → CRANS → SIN → CRANS
- NEAR → CRANS → PUMP → CRANS

Configuration

• Base Amount: 0.3 NEAR per trade
• Cooldown: 1-3 minutes between cycles
• Safety Margin: 99.9% slippage protection
• Gas Limit: 300 TGas
• Minimum Threshold: 3 CRANS minimum output

🔧 Dependencies

• React
• NEAR
• Ref Finance SDK
• Big.js
• TypeScript

🚀 Usage

Prerequisites

• NEAR wallet with NEAR tokens
• Ref Finance deposit for gas optimization
• Private key configuration

Integration

import { ArbitrageSupervisor } from './yieldOptimizer';
import { CransArbitrage } from './arbitrageDetector';

// Initialize yield optimizer
<ArbitrageSupervisor 
  isEnabled={true}
  onProfit={(profit) => console.log('Profit:', profit)}
  onRouteFound={(route) => console.log('Best route:', route)}
/>

📊 Performance Metrics

The system provides real-time monitoring of:

• NEAR to CRANS conversion efficiency
• Profit/loss tracking on circular routes
• Route performance comparison
• Gas usage optimization
• Market conditions analysis

📈 Strategy Logic

1. Balance Check: Verify NEAR token availability on Ref Finance
2. Route Simulation: Test all possible NEAR → CRANS paths
3. Arbitrage Detection: Identify most profitable route
4. Circular Route Execution: Execute multi-step arbitrage cycles
5. Profit Calculation: Track and report returns
6. Withdrawal & Transfer: Move profits and manage liquidity
7. Cooldown: Wait before next cycle

🔄 Circular Arbitrage Mechanism

The strategy implements sophisticated circular arbitrage:

1. NEAR Deposit: Ensures sufficient NEAR on Ref Finance
2. Multi-step Swaps: Executes circular paths like NEAR → CRANS → Token → CRANS
3. Profit Extraction: Withdraws accumulated CRANS tokens
4. Balance Management: Maintains optimal liquidity ratios

🔍 Monitoring & Logging

Comprehensive logging system with:

• Detailed transaction logs with [ARB_LOG] prefix
• Route comparison data
• Balance tracking
• Error tracking and reporting
• Performance metrics
• Market condition alerts