Pareto Order Book Oracle Bot V1

[Disclaimer: This repository is no longer maintained and is meant for primarily educational purposes.]

Part of the series detailed in this whitepaper.

The Pareto smart contracts require oracles for spot and mark prices. Due to quality and speed concerns, we do not rely on Chainlink. Rather, we opt to build our own oracles.

This repo is responsible for fetching price feeds from Binance, FTX, and Bitfinex, and posting the median price on-chain at a steady interval. The repo will also compute historical volatility for each price feed.

Setup

Install the package locally:

pip install -e ./

This oracle is dependent on Pareto's smart contracts. Clone this repo and run the following command in its root directory while running a hardhat node:

npx hardhat run ./scripts/deploy.mockusdc.ts --network localhost

This will return an output containing the following:

Deployer: ...
Private Key: ...
...
Deployed ETH spot oracle: ...
Deployed ETH mark oracle: ...
...

Then, set environment variable ETH_PRIVATE_KEY to private key of the deployer. Also set ETH_SPOT_ORACLE to the ETH spot price oracle address, and set ETH_MARK_ORACLE to the ETH mark price oracle address. It is important that this is up-to-date.

This oracle is also dependent on Pareto's order book. Clone this repo and continue with its setup instructions. Build the binary by running go build, which will create a binary. Run the binary to start the local server. Alternatively, you may try go run, though compilation is recommended.

Usage

Run the main.py script inside oracle/bin:

python oracle/bin/main.py

To post results on-chain, you will need to specify your private key in an environment variable ETH_PRIVATE_KEY. The account associated with this private key must either be an owner or keeper of the pareto-core-v1 smart contract. If no key is provided or an invalid key is provided, results are not saved, only printed.

By default this script assumes a local chain via Ganache. If you are not testing locally (e.g. Arbitrum testnet or mainnet), then you will need to ensure that you have an Alchemy key set at ORACLE_ALCHEMY_API_KEY for mainnet and TEST_ORACLE_ALCHEMY_API_KEY for mainnet. Also you will need to set the envionrment variable ORDERBOOK_HOST to the URL for the Pareto order book.