arbitrage_wallet's Introduction

Luna Arbitrage Wallet

owner: The person/wallet who will be performing the arbitrage of funds. Earns a configurable % of profits.
user: The perso/wallet that supplies the funds that will be arbitraged.

The owner instantiates the contract, supplying an address for the user.
The user whitelists specific addresses that the owner will be able to interact with - most likely, these should be exchange addresses. (Note: until the contract has been 'locked', the owner can supply these as well).
The user configures the list of Cw20 addresses & denoms that will be arbitraged with - these should be currencies that are all considered to have essentially equivalent value, such as Luna/bLuna/cLuna.
The user 'locks' the contract. This prevents the owner from making further configuration changes, securing the user's funds.
The user deposits funds into the contract. The amount of funds deposited is kept track of.
The owner can now, from their own wallet, send tokens/messages/Cw20ExecuteMsg's to the smart contract that will be forwarded on accordingly. This gives the owner the ability to freely interact with the wallet's funds, but only with the whitelisted addresses.
At any time, the owner or user can withdraw funds. The owner receives a % of the profit that has been made (default 20%). The rest of the funds are withdrawable by the user.

In its current state, the owner must pay gas fees for the arbitrage trades. Assuming a profitable strategy, this should be less than the 20% commission, but I might consider creating a FeeGrant that allows the owner to use the funds stored in the contract itself.

NOTE: I probably should have flipped the naming of user/owner as I think the current naming scheme feels backwards.

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