How To Become a Liquidity Provider on Komodo DeFi Framework
The following tutorial introduces the reader to a simple method to become a liquidity provider on the main network of the Komodo DeFi Framework software.
Requirements
Virtual Private Server (Recommended)
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
Get the Komodo DeFi Framework API and Coins Configuration File
Step 1: Get the Komodo DeFi Framework API binary
You can get the Komodo DeFi Framework API binary by downloading pre-compiled versions from the official repository or by building from source.
Downloading from the Official Repository (Option 1)
We will create ~/komodo-defi-framework/target/debug directory for compatibility with building from source method.
You can get the latest release of the Komodo DeFi Framework API binary from the komodo-defi-framework/releases page on Github. Download and extract it to ~/komodo-defi-framework/target/debug.
For example:
mkdir -p ~/komodo-defi-framework/target/debug
cd ~/komodo-defi-framework/target/debug
wget $(curl --silent https://api.github.com/repos/KomodoPlatform/komodo-defi-framework/releases | jq -r '.[0].assets[] | select(.name | endswith("Linux-Release.zip")).browser_download_url')
unzip *Linux-Release.zipThen you can proceed to download the coins configuration file.
Building from Source (Option 2)
If you decide to build from source, please follow the Build Komodo DeFi Framework API from source guide
Step 2: Download the Coins Configuration File
Command
cd ~/komodo-defi-framework/target/debug ; wget https://raw.githubusercontent.com/KomodoPlatform/coins/master/coinsShow sample output
$ cd ~/komodo-defi-framework/target/debug; wget https://raw.githubusercontent.com/KomodoPlatform/coins/master/coins
--2019-07-20 05:27:50-- https://raw.githubusercontent.com/KomodoPlatform/coins/master/coins
Resolving raw.githubusercontent.com (raw.githubusercontent.com)... 151.101.8.133
Connecting to raw.githubusercontent.com (raw.githubusercontent.com)|151.101.8.133|:443... connected.
HTTP request sent, awaiting response...
200 OK
Length: 58974 (58K) [text/plain]
Saving to: ‘coins’
coins 100%[=================================================================================================================================================>] 57.59K --.-KB/s in 0.002s
2019-07-20 05:27:50 (37.2 MB/s) - ‘coins’ saved [58974/58974]
Running the Komodo DeFi Framework API
Step 1: Download and Edit Scripts to Provide Liquidity for the KMD/LTC Pair
Navigate to the directory: ~/komodo-defi-framework/target/debug
cd ~/komodo-defi-framework/target/debugDownload the scripts used to start and interact with the Komodo DeFi Framework API.
git clone https://github.com/gcharang/mm2scriptsCopy 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 Komodo Desktop Wallet.
Backup these 24 words carefully. They provide access to the coins that are stored in the addresses created by the Komodo DeFi Framework API.
To learn more about creating secure phrases, read this linked content on the Bitcoin wiki.
Edit the start.sh File
Open the start.sh file in the current directory using the nano text-editor.
nano start.shReplace 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_UserP@SSW0RD" 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_UserP@SSW0RD with the same password used in the start.sh file.
userpass=GlHjhvYlev8fh8xZgSBWe now have basic scripts to use the Komodo DeFi Framework API as a liquidity provider.
Step 2: Start the Komodo DeFi Framework API
Command
./start.shShow output
nohup: appending output to 'nohup.out'Step 3: Connect to the Coin Networks (KMD & LTC)
Open a new terminal and navigate to the directory: ~/komodo-defi-framework/target/debug
cd ~/komodo-defi-framework/target/debugConnect to the KMD network
Command
./KMDconnect.shResponse
{"address":"RG1yR8UGqyHmRBcrwAakUEi8u1AC5jNABY","balance":"0","coin":"KMD","result":"success"}Take note of the address.
Show response
A sample response of the terminal output after the start.sh file is executed.
2019-07-20 08:07:13, lp_coins:669] ticker = "KMD", block_count = 1450741Connect to the LTC network
Command
./LTCconnect.shResponse
{"address":"LRxjbptpKojFbywpe8avejShLx4sYvKSBZ","balance":"0","coin":"LTC","result":"success"}Show output
2019-07-20 08:08:11, lp_coins:669] ticker = "LTC", block_count = 1670767Connecting 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.)
{
"userpass": "RPC_UserP@SSW0RD",
"method": "electrum",
"coin": "<COIN TICKER>",
"servers": [
{
"url": "<url of electrum server 1>"
},
{
"url": "<url of electrum server 2>"
}
]
}curl --url "http://127.0.0.1:7783" --data '{
"userpass": "RPC_UserP@SSW0RD",
"method": "electrum",
"coin": "<COIN TICKER>",
"servers": [
{
"url": "<url of electrum server 1>"
},
{
"url": "<url of electrum server 2>"
}
]
}'import requests
import json
url = "http://127.0.0.1:7783"
payload = {
"userpass": "RPC_UserP@SSW0RD",
"method": "electrum",
"coin": "<COIN TICKER>",
"servers": [
{
"url": "<url of electrum server 1>"
},
{
"url": "<url of electrum server 2>"
}
]
}
response = requests.post(url, json=payload)
print(json.dumps(response.json(), indent=2))const payload = {
"userpass": "RPC_UserP@SSW0RD",
"method": "electrum",
"coin": "<COIN TICKER>",
"servers": [
{
"url": "<url of electrum server 1>"
},
{
"url": "<url of electrum server 2>"
}
]
};
const response = await fetch("http://127.0.0.1:7783", {
method: "POST",
body: JSON.stringify(payload),
});
console.log(await response.json());<?php
$payload = <<<'JSON'
{
"userpass": "RPC_UserP@SSW0RD",
"method": "electrum",
"coin": "<COIN TICKER>",
"servers": [
{
"url": "<url of electrum server 1>"
},
{
"url": "<url of electrum server 2>"
}
]
}
JSON;
$ch = curl_init("http://127.0.0.1:7783");
curl_setopt($ch, CURLOPT_POST, true);
curl_setopt($ch, CURLOPT_POSTFIELDS, $payload);
curl_setopt($ch, CURLOPT_RETURNTRANSFER, true);
curl_setopt($ch, CURLOPT_HTTPHEADER, ['Content-Type: application/json']);
$response = curl_exec($ch);
curl_close($ch);
echo $response;package main
import (
"bytes"
"fmt"
"io"
"net/http"
)
func main() {
payload := []byte(`{"userpass":"RPC_UserP@SSW0RD","method":"electrum","coin":"<COIN TICKER>","servers":[{"url":"<url of electrum server 1>"},{"url":"<url of electrum server 2>"}]}`)
resp, err := http.Post("http://127.0.0.1:7783", "application/json", bytes.NewBuffer(payload))
if err != nil {
panic(err)
}
defer resp.Body.Close()
body, _ := io.ReadAll(resp.Body)
fmt.Println(string(body))
}require 'net/http'
require 'json'
require 'uri'
uri = URI("http://127.0.0.1:7783")
payload = {
"userpass": "RPC_UserP@SSW0RD",
"method": "electrum",
"coin": "<COIN TICKER>",
"servers": [
{
"url": "<url of electrum server 1>"
},
{
"url": "<url of electrum server 2>"
}
]
}
response = Net::HTTP.post(uri, payload.to_json, 'Content-Type' => 'application/json')
puts JSON.pretty_generate(JSON.parse(response.body))Make the file executable
cd ~/komodo-defi-framework/target/debug
chmod +x COINNAMEconnect.shExecute the command ./COINNAMEconnect.sh to instruct your Komodo DeFi Framework API instance to connect to the coin’s electrum server.
Trading
Step 0: Query the Current Orderbooks
Display the KMD/LTC Orderbook.
Command
./orderbook.sh KMD LTC | jq '.'Show sample output
{
"askdepth": 0,
"asks": [
{
"coin": "KMD",
"address": "RT9MpMyucqXiX8bZLimXBnrrn2ofmdGNKd",
"price": "0.013215470000000002",
"price_rat": [
[1, [1536963325, 1773750]],
[1, [0, 134217728]]
],
"price_fraction": {
"numer": "7618199778243325",
"denom": "576460752303423488"
},
"maxvolume": "485.99773485000003",
"max_volume_rat": [
[1, [1550366371, 995323]],
[1, [0, 2048]]
],
"max_volume_fraction": {
"numer": "4274881284322979",
"denom": "8796093022208"
},
"pubkey": "1bb83b58ec130e28e0a6d5d2acf2eb01b0d3f1670e021d47d31db8a858219da8",
"age": 10,
"zcredits": 0,
"uuid": "ac058b00-24e0-40e1-82f0-0ec4131450c5",
"is_mine": false
}
],
"base": "KMD",
"biddepth": 0,
"bids": [
{
"coin": "LTC",
"address": "Ld6814QT6fyChvvX3gmhNHbRDyiMBvPr9s",
"price": "0.011956849349654498",
"price_rat": [
[1, [1238828453, 401205]],
[1, [0, 33554432]]
],
"price_fraction": {
"numer": "1723163592820133",
"denom": "144115188075855872"
},
"maxvolume": "1.03403044",
"max_volume_rat": [
[1, [3226923691, 542129]],
[1, [0, 524288]]
],
"max_volume_fraction": {
"numer": "2328429552136875",
"denom": "2251799813685248"
},
"depth": 0,
"pubkey": "1bb83b58ec130e28e0a6d5d2acf2eb01b0d3f1670e021d47d31db8a858219da8",
"age": 11,
"zcredits": 0,
"uuid": "80019ae0-5a42-40db-bc49-18975987e45b",
"is_mine": false
}
],
"netid": 8762,
"numasks": 1,
"numbids": 1,
"rel": "LTC",
"timestamp": 1563610320
}Display the LTC/KMD Orderbook.
Command
./orderbook.sh LTC KMD | jq '.'Show sample output
{
"askdepth": 0,
"asks": [
{
"coin": "LTC",
"address": "Ld6814QT6fyChvvX3gmhNHbRDyiMBvPr9s",
"price": "83.19879514",
"price_rat": [
[1, [255867351, 1363129]],
[1, [0, 16384]]
],
"price_fraction": {
"numer": "5854594731096535",
"denom": "70368744177664"
},
"maxvolume": "1.03403044",
"max_volume_rat": [
[1, [3226923691, 542129]],
[1, [0, 524288]]
],
"max_volume_fraction": {
"numer": "2328429552136875",
"denom": "2251799813685248"
},
"pubkey": "1bb83b58ec130e28e0a6d5d2acf2eb01b0d3f1670e021d47d31db8a858219da8",
"age": 9,
"zcredits": 0,
"uuid": "80019ae0-5a42-40db-bc49-18975987e45b",
"is_mine": false
}
],
"base": "LTC",
"biddepth": 0,
"bids": [
{
"coin": "KMD",
"address": "RT9MpMyucqXiX8bZLimXBnrrn2ofmdGNKd",
"price": "75.27507393894138",
"price_rat": [
[1, [3018734531, 308326]],
[1, [0, 4096]]
],
"price_fraction": {
"numer": "1324253105241027",
"denom": "17592186044416"
},
"maxvolume": "485.99773485000003",
"max_volume_rat": [
[1, [1550366371, 995323]],
[1, [0, 2048]]
],
"max_volume_fraction": {
"numer": "4274881284322979",
"denom": "8796093022208"
},
"pubkey": "1bb83b58ec130e28e0a6d5d2acf2eb01b0d3f1670e021d47d31db8a858219da8",
"age": 10,
"zcredits": 0,
"uuid": "ac058b00-24e0-40e1-82f0-0ec4131450c5",
"is_mine": false
}
],
"netid": 8762,
"numasks": 1,
"numbids": 1,
"rel": "KMD",
"timestamp": 1563610443
}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 Komodo DeFi Framework API.
Use the following command to find the address and check the balance.
./mybalance.sh KMDResponse
{"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": {
"type": "Utxo",
"coin": "KMD",
"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 0400008085202f8901c25ecb12f5fc17120bf92ed18ff71754b5f58e6eece2fba44fc114f14176df04010000006a4730440220732047807944afcb062f5dc7af87fe5b9979e447cd235ef1b130e50008c3d51a02201b232814bcee9c0b5a29aa24d453e493cd121a0e21d94c0e84476de0a15e74a101210217a6aa6c0fe017f9e469c3c00de5b3aa164ca410e632d1c04169fd7040e20e06ffffffff02401ac805000000001976a914d020156e7d0fead249cfb5a458952ae941ac9f9e88ac5800fb0b000000001976a9144726f2838fc4d6ac66615e10604e18926e9b556e88ac06a5355d000000000000000000000000000000Response
{
"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 Komodo DeFi Framework API, use the stop.sh script.
Command
./stop.shResponse
{
"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-89a8-7b655b744eadResponse
{
"result": "success"
}