How To Become a Liquidity Provider on AtomicDEX

The following tutorial introduces the reader to a simple method to become a liquidity provider on the main network of the AtomicDEX software.

Requirements

We recommend that the user have a Virtual Private Server (VPS) with at least the following specifications.

  • 2 vCPU
  • 4GB RAM
  • OS: Ubuntu 18.04 (Preferably a clean installation)

Home-Based Connection

If the user prefers to use computer hardware at home, instead of a VPS, we recommend that the user have a very strong Internet connection. We also recommend that the user have a competitive hardware setup running on Ubuntu 18.04.

  • Internet speed - at least 1 MBPS
  • RAM - at least 4 GB
  • Processor - at least i5 or equivalent

Installing Dependencies

Step 1: OS Packages

Command
sudo apt update
sudo apt-get install build-essential git jq llvm-3.9-dev libclang-3.9-dev clang-3.9 cmake libssl-dev pkg-config

Step 2: Install Rust

Command
curl https://sh.rustup.rs -sSf | sh

When asked to select an installation type, select the following.

1) Proceed with installation (default)

Once the installation is complete, enter Logout and then Login again.

Alternatively, you may execute the following command in each active shell until you reach the Login again.

source $HOME/.cargo/env

Step 3: Install Rust components

Command
rustup install nightly-2019-10-06
Command
rustup default nightly-2019-10-06
Command
rustup component add rustfmt-preview

Install MarketMaker Software

Step 1: Download source code

cd ~ ; git clone https://github.com/KomodoPlatform/atomicDEX-API --branch mm2 --single-branch && cd atomicDEX-API

Step 2: Compile Source Code

Command
cargo build --features native -vv

Step 3: Download the Coins Configuration File

Command
cd ~/atomicDEX-API/target/debug ; wget https://raw.githubusercontent.com/jl777/coins/master/coins

Running the MarketMaker

Step 1: Download and Edit Scripts to Provide Liquidity for the KMD/LTC Pair

Navigate to the directory: ~/atomicDEX-API/target/debug

cd ~/atomicDEX-API/target/debug

Download the scripts used to start and interact with MarketMaker.

git clone https://github.com/gcharang/mm2scripts

Copy those scripts to the current directory.

cp mm2scripts/* .

Create a Secure Seed Phrase

The user must create a seed phrase that will serve as a type of password for accessing all coins in the user's digital wallet.

Various tools are available in the cryptocurrency community to create a secure seed phrase. One available method is to use the automated procedure that is included in the Verus Agama Wallet.

Backup these 24 words carefully. They provide access to the coins that are stored in the addresses created by the MarketMaker.

To learn more about creating secure phrases, read this linked content on the Bitcoin wiki.

Edit the start.sh File

Danger!

We are about to place the seed phrase in the user's start.sh file. This step is crucial for cryptocurrency security. Failure to properly execute this step can (and likely will) lead to a loss of all your funds.

Open the start.sh file in the current directory using the nano software.

nano start.sh

Replace the value REPLACE_TRADING_WALLET_PASSPHRASE in the file with the seed phrase.

Create an RPC Control User Password

Keep the nano software and start.sh file open.

Separately, create an additional password for Remote Procedure Call (RPC) access.

This should be a simple password that is sufficiently random, has at least eight digits, and is based on numbers and letters.

Place the User Password into the start.sh File

Replace the text "RPC_CONTROL_USERPASSWORD" with your RPC user password.

Example

Hit Ctrl + X to save and exit.

Observe the bottom of the terminal for any prompts. Hit y when asked to save. When the file name is shown, hit Enter if the name matches start.sh.

Edit the userpass File

Replace the text RPC_CONTROL_USERPASSWORD with the same password used in the start.sh file.

We now have basic scripts to use the MarketMaker as a liquidity provider.

Step 2: Start the MarketMaker

Command
./start.sh

Note

Starting the MarketMaker 2.0 software in the above manner causes the passphrase to be visible to other programs such as htop.

To avoid this issue, there is an alternate method that uses a json file to replace the command line parameters

To use it:

cp MM2_sample.json MM2.json
nano MM2.json

Edit the values of the keys "rpc_password" and "passphrase" with the same values used in the start.sh file. Save and close the file.

To start the MarketMaker:

stdbuf -oL nohup ./mm2

Step 3: Connect to the Coin Networks (KMD & LTC)

Open a new terminal and navigate to the directory: ~/atomicDEX-API/target/debug

cd ~/atomicDEX-API/target/debug

Connect to the KMD network

Command
./KMDconnect.sh
Response
{"address":"RG1yR8UGqyHmRBcrwAakUEi8u1AC5jNABY","balance":"0","coin":"KMD","result":"success"}

Take note of the address.

We recommend here that you make sure that the public address above matches the address generated by the same passphrase, when entered into the AtomicDEX wallet or the Verus Agama wallet.

Connect to the LTC network

Command
./LTCconnect.sh
Response
{"address":"LRxjbptpKojFbywpe8avejShLx4sYvKSBZ","balance":"0","coin":"LTC","result":"success"}

Connecting to a Network Other Than KMD or LTC

To connect to a coin network other than KMD or LTC, first make sure that the coin's details are present in the coins file you downloaded. Also make sure that the file has the property "mm2": 1.

Next, create a new file named "COINNAMEconnect.sh" and add the following contents; replace the characters < and > and all text between them with values from your coins file. (For example: <text where 7771 should be inserted> becomes 7771.)

#!/bin/bash
source userpass
curl --url "http://127.0.0.1:7783" --data "{\"userpass\":\"$userpass\",\"method\":\"electrum\",\"coin\":\"<COIN TICKER>\",\"servers\":[{\"url\":\"<url of electrum server 1>\"},{\"url\":\"<url of electrum server 2>\"}]}"

Make the file executable

cd ~/atomicDEX-API/target/debug
chmod +x COINNAMEconnect.sh

Execute the command ./COINNAMEconnect.sh to instruct your Market Maker 2 instance to connect to the coin's electrum server.

Trading

Step 0: Query the Current Orderbooks

Display the KMD/LTC Orderbook.

See this linked document for an explanation of the output.

Command
./orderbook.sh KMD LTC | jq '.'

Display the LTC/KMD Orderbook.

Command
./orderbook.sh LTC KMD | jq '.'

Step 1: Fund the Address

In this example, we sell KMD for LTC.

To achieve this, we first fund the KMD address created by the MarketMaker.

Use the following command to find the address and check the balance.

./mybalance.sh KMD
Response
{"address":"RFmQiF4Zbzxchv9AG6dw6ZaX8PbrA8FXAb","balance":"2.98","coin":"KMD"}

Step 2: Place an Order

Execute the following command to sell 2 KMD at the price of 1 KMD = 0.013 LTC.

Command
./place_order.sh KMD LTC 0.013 2 | jq '.'
Response
{
  "result": {
    "base": "KMD",
    "created_at": 1563800688606,
    "matches": {},
    "max_base_vol": "2",
    "min_base_vol": "0",
    "price": "0.013",
    "rel": "LTC",
    "started_swaps": [],
    "uuid": "d375fce0-5d7c-4d1d-9cfa-6177c78df44a"
  }
}

Step 3: Check the Status of an Order

Check the status of an order by referring to its uuid.

Command
./order_status.sh 6621efd5-72dd-422c-89a8-7b655b744ead | jq '.'
Response
{
  "order": {
    "available_amount": "2",
    "base": "KMD",
    "cancellable": true,
    "created_at": 1563800688606,
    "matches": {},
    "max_base_vol": "2",
    "min_base_vol": "0",
    "price": "0.013",
    "rel": "LTC",
    "started_swaps": [],
    "uuid": "d375fce0-5d7c-4d1d-9cfa-6177c78df44a"
  },
  "type": "Maker"
}

Step 4: Withdrawal of Coins

After someone accepts the order and your trade is finished, the coins received (LTC) and the coins leftover (KMD) can be withdrawn.

Execute the following command to withdraw 0.97 KMD to the address RUFf4de7gZE7sp5vPcxaAsvv6j79ZbQgAu.

Command
./withdraw.sh KMD RUFf4de7gZE7sp5vPcxaAsvv6j79ZbQgAu 0.97 | jq '.'
Response
{
  "tx_hex": "0400008085202f8901c25ecb12f5fc17120bf92ed18ff71754b5f58e6eece2fba44fc114f14176df04010000006a4730440220732047807944afcb062f5dc7af87fe5b9979e447cd235ef1b130e50008c3d51a02201b232814bcee9c0b5a29aa24d453e493cd121a0e21d94c0e84476de0a15e74a101210217a6aa6c0fe017f9e469c3c00de5b3aa164ca410e632d1c04169fd7040e20e06ffffffff02401ac805000000001976a914d020156e7d0fead249cfb5a458952ae941ac9f9e88ac5800fb0b000000001976a9144726f2838fc4d6ac66615e10604e18926e9b556e88ac06a5355d000000000000000000000000000000",
  "tx_hash": "e07709088fa2690fdc71b43b5d7760689e42ca90f7dfb74b18bf47a1ad94c855",
  "from": ["RFmQiF4Zbzxchv9AG6dw6ZaX8PbrA8FXAb"],
  "to": ["RUFf4de7gZE7sp5vPcxaAsvv6j79ZbQgAu"],
  "total_amount": 2.98,
  "spent_by_me": 2.98,
  "received_by_me": 2.00999,
  "my_balance_change": -0.97001,
  "block_height": 0,
  "timestamp": 1563798788,
  "fee_details": {
    "amount": 1e-5
  },
  "coin": "KMD",
  "internal_id": ""
}

Copy the "tx_hex" value from the above response and send it to the network using the sendrawtransaction.sh script.

Command
./sendrawtransaction.sh KMD 0400008085202f8901c25ecb12f5fc17120bf92ed18ff71754b5f58e6eece2fba44fc114f14176df04010000006a4730440220732047807944afcb062f5dc7af87fe5b9979e447cd235ef1b130e50008c3d51a02201b232814bcee9c0b5a29aa24d453e493cd121a0e21d94c0e84476de0a15e74a101210217a6aa6c0fe017f9e469c3c00de5b3aa164ca410e632d1c04169fd7040e20e06ffffffff02401ac805000000001976a914d020156e7d0fead249cfb5a458952ae941ac9f9e88ac5800fb0b000000001976a9144726f2838fc4d6ac66615e10604e18926e9b556e88ac06a5355d000000000000000000000000000000
Response
{
  "tx_hash": "e07709088fa2690fdc71b43b5d7760689e42ca90f7dfb74b18bf47a1ad94c855"
}

The above tx_hash can be searched for in an explorer to check the status of the withdraw.

Miscellaneous

Stop

To stop the MarketMaker, use the stop.sh script.

Command
./stop.sh
Response
{
  "result": "success"
}

View All the Orders Placed by Our Node

Command
./myorders.sh  | jq .
Response
{
  "result": {
    "maker_orders": {
      "d82357c5-22c9-483d-bf3d-1d09d0d921bf": {
        "available_amount": "2",
        "base": "KMD",
        "cancellable": true,
        "created_at": 1563797287088,
        "matches": {},
        "max_base_vol": "2",
        "min_base_vol": "0",
        "price": "0.013",
        "rel": "LTC",
        "started_swaps": [],
        "uuid": "d82357c5-22c9-483d-bf3d-1d09d0d921bf"
      }
    },
    "taker_orders": {}
  }
}

Cancel an Order

Cancel an order by referring to its uuid.

Command
./cancel_order.sh 6621efd5-72dd-422c-89a8-7b655b744ead
Response
{
  "result": "success"
}