Vault deployment#

This chapter discussed how to deploy a trade-executor binary to manage a trading strategy deployed for multiple users using a vault.

If you are looking for a single user deployment, Hot wallet deployment is an easier option.

Preface#

This example shows how to deploy a vault for Enzyme protocol

  • Multiple investors,

  • Vault owner and asset manager is set to be a single private key.

  • Any strategy can trade assets whitelisted by Enzyme governance. See tradeexecutor.cli.commands.enzyme_asset_list for details how to view the list of currently active assets.

Note

In the beta mode, the vauklt does not have any safety features and can trade any assets. Use only for trusted oracle setups.

Prerequisites#

To get started you need to have a

Note

Private keys or hot wallets cannot be shared across different trade-executor instances. Because this will mess up accounting.

Managing Docker images#

  • You need to be able to run a Docker image on your server in order to run trade-executor

  • See Managing Docker images to learn how to get started with Docker

Strategy name and id#

See ref:strategy metadata for details.

Create an Enzyme vault#

You can create a vault by running trade-executor enzyme-deploy-vault command and giving it the configuration by environment variables.

You need to

  • Be familiar with UNIX shell

  • Decide your vault name and token symbol

  • Have PRIVATE_KEY set up with some gas money for the trade executor hot wallet. See how to Creating a hot wallet for more info.

  • Have Polygonscan, etc. API key for the verification of the deployed contracts

  • Get TRADE_EXECUTOR_VERSION Docker version from the Github container registry

Note

Never share the hot wallet (private key) across different executors.

This will

Here is an example shell command how to put together a Docker command to run enzyme-deploy-vault. See also the explanation how a local working directory is mounted. Remember to replace –fund-name and –fund-symbol with your own strings.

We are deploying multiple contracts. First test with –simulate flag to see the deployment finish all the way to end.

# You need to provider these
export JSON_RPC_POLYGON=
export PRIVATE_KEY=
export ETHERSCAN_API_KEY=

# The address DAO/proto DAO multisig that will own this vault.
# This address is Trading Strategy Protocol's ProtoDAO address.
export OWNER_ADDRESS=0x238B0435F69355e623d99363d58F7ba49C408491

# ERC-20 token symbol
export FUND_SYMBOL="YOURTOKENSYMBOL"

# Enzyme vault name
export FUND_NAME="Your algorithm name"

# Space-separated list of tokens the vault allows the trade-executor to trade.
# Here we have WETH and WMATIC on Polygon.
export WHITELISTED_ASSETS="0x7ceb23fd6bc0add59e62ac25578270cff1b9f619 0x0d500B1d8E8eF31E21C99d1Db9A6444d3ADf1270"

# The vault is nominated in USDC *Polygon
export DENOMINATION_ASSET="0x2791Bca1f2de4661ED88A30C99A7a9449Aa84174"

# Terms of service manager smart contract address.
# This one is deployed on Polygon.
export TERMS_OF_SERVICE_ADDRESS="0xbe1418df0bAd87577de1A41385F19c6e77312780"

# Run the command
# - Pass private key and JSON-RPC node from environment variables
# - Set vault-info.json to be written to a local file system
export TRADE_EXECUTOR_IMAGE=ghcr.io/tradingstrategy-ai/trade-executor:${TRADE_EXECUTOR_VERSION}
docker run \
    --interactive \
    --tty \
    -v `pwd`:`pwd` \
    -w `pwd` \
    $TRADE_EXECUTOR_IMAGE \
    -- \
    enzyme-deploy-vault \
    --simulate \
    --private-key=$PRIVATE_KEY \
    --vault-record-file="$FUND_SYMBOL-vault-info.json" \
    --fund-name="$FUND_NAME" \
    --fund-symbol="$FUND_SYMBOL" \
    --json-rpc-polygon="$JSON_RPC_POLYGON" \
    --etherscan-api-key=$ETHERSCAN_API_KEY \
    --whitelisted-assets="$WHITELISTED_ASSETS" \
    --denomination-asset="$DENOMIATION_ASSET" \
    --terms-of-service-address="$TERMS_OF_SERVICE_ADDRESS" \
    --owner-address="$OWNER_ADDRESS"

This will give you the log output for the deployment:

INFO     Chain polygon connects using alien-black-thunder.matic.quiknode.pro
TRADE    Connected to chain: polygon, node provider: alien-black-thunder.matic.quiknode.pro, gas pricing method: london
INFO     Using proof-of-authority web3 middleware for chain 137
INFO     Connected to chain polygon
INFO       Chain id is 137
INFO       Latest block is 41,991,567
INFO     Balance details
INFO       Hot wallet is 0x40d8368C6D1FfC90fe705B74C6F0F56E1d11092E
INFO       We have 103.618645 tokens for gas left
INFO     Enzyme details
INFO       Integration manager deployed at 0x92fCdE09790671cf085864182B9670c77da0884B
INFO       USDC is 0x2791Bca1f2de4661ED88A30C99A7a9449Aa84174
INFO     Deploying vault
INFO     Deploying VaultSpecificGenericAdapter
INFO     Vault details
INFO       Vault at 0x6E321256BE0ABd2726A234E8dBFc4d3caf255AE0
INFO       Comptroller at 0x0fC476e8050a9eDe4D24E2f01d8775249bDf310e
INFO       GenericAdapter at 0x07f7eB451DfeeA0367965646660E85680800E352
INFO       VaultUSDCPaymentForwarder at 0xE244CEcd9Ee1e2eeAda81Da12650F1fd5d866713
INFO       Deployment block number is 41991571

You can also see the deploy data in JSON file:

cat vault-info.json

This gives:

{
    "fund_name": "MATIC-ETH-USDC momentum algorithm",
    "fund_symbol": "MATIC-ETH-USDC-ALGO",
    "vault": "0xA2488118e33b2a72DC11e2c97eF0f5788700B2C2",
    "comptroller": "0x5Cf97C5084fa1220Ac1465f4Fa7402F962C638d8",
    "generic_adapter": "0x103DAa155fe94c6E53719E3f1d52bbACC4c15f8D",
    "block_number": 54883433,
    "usdc_payment_forwarder": "0xffaA2134DEf71180Db9e831c1765333645F0EC18",
    "guard": "0xD03a5D1AD2391A6009Ab0d6c519967790461b282",
    "deployer": "0x69960a0E963Ba6800A87980D4239A60fF7EC5e6e",
    "denomination_token": "0x2791Bca1f2de4661ED88A30C99A7a9449Aa84174",
    "terms_of_service": "0xbe1418df0bAd87577de1A41385F19c6e77312780",
    "whitelisted_assets": "0x7ceb23fd6bc0add59e62ac25578270cff1b9f619 0x0d500B1d8E8eF31E21C99d1Db9A6444d3ADf1270",
    "asset_manager_address": "0x69960a0E963Ba6800A87980D4239A60fF7EC5e6e",
    "owner_address": "0x238B0435F69355e623d99363d58F7ba49C408491"
}

Note

It is important that you keep the contents of the vault smart contract addresses and/or the JSON file around, as otherwise you cannot interact with your vault later.

Registering the vault with Enzyme’s website#

After the vault has been deployed, you can visit enzyme.finance <https://enzyme.finance> and register your vault there, to make it publicly accessible.

  • Import the private key to a secure wallet e.g. TrustWallet on mobile or Rabby on desktop

  • Sign in to Enzyme

  • Switch to correct network

  • The vault should automatically appear in left under “My vault”

  • Go to Vault Settings, choose Claim vault

  • Sign a message from your wallet for claiming the ownership

  • Now you can fill in the vault description on Enzyme’s website database

Set up live execution environment#

Create a trade-executor Docker instance using docker-compose that will run the live trading.

  • You have set up an environment file for the vault live trading

  • You have set up a docker-compose configuration entry for your live trade executor, see strategy deploment for details

You will need to create

  • The final strategy module file

  • Public environment variables file

  • Secret environment variables file

  • Final environment variables file

  • docker-compose.yml entry

Example public environment variables entry:

#
# This is the public environment variables file for a trade executor.
# This is only partial configuration.
#
# For more information see the documentation https://tradingstrategy.ai/docs/
#

# This is a vault based strategy
ASSET_MANAGEMENT_MODE="enzyme"

#
# Strategy assets and metadata
#

STRATEGY_FILE=strategies/enzyme-polygon-eth-usdc.py

# Port 3456 is mapped to the public IP on the host using Caddy
HTTP_ENABLED=true

# Set parameters from Enzyme vault deployment.
# Get output from trade-executor enzyme-deploy-vault command
VAULT_ADDRESS=0x6E321256BE0ABd2726A234E8dBFc4d3caf255AE0
VAULT_ADAPTER_ADDRESS=0x07f7eB451DfeeA0367965646660E85680800E352
VAULT_PAYMENT_FORWARDER_ADDRESS=...
VAULT_DEPLOYMENT_BLOCK_NUMBER=...

Remember to slice files together:

cat ~/strategies/env/enzyme-polygon-eth-usdc.env ~/secrets/enzyme-polygon-eth-usdc-secrets.env > ~/secrets/enzyme-polygon-eth-usdc-final.env

Setting up docker-compose entry#

See Docker Compose example.

Test docker-compose entry#

You can check the trade executor with:

docker-compose run enzyme-polygon-eth-usdc --help

This gives:

Usage: trade-executor [OPTIONS] COMMAND [ARGS]...

Options:
  --install-completion [bash|zsh|fish|powershell|pwsh]
                                  Install completion for the specified shell.
  --show-completion [bash|zsh|fish|powershell|pwsh]
                                  Show completion for the specified shell, to copy it or customize the installation.
  --help                          Show this message and exit.

Commands:
  check-universe       Checks that the trading universe is helthy for a given strategy.
  check-wallet         Print out the token balances of the hot wallet.
  console              Open interactive IPython console to explore state.
  enzyme-asset-list    Print out JSON list of supported Enzyme assets on a chain.
  enzyme-deploy-vault  Deploy a new Enzyme vault.
  hello                Check that the application loads without doing anything.
  init                 Initialise a strategy.
  perform-test-trade   Perform a small test swap.
  repair               Repair broken state.
  start                Launch Trade Executor instance.
  version              Print out the version information.

Run a backtest on the strategy module#

After the strategy module and Docker instance have been deployed. For more details on how to do a final backtest see docker-backtest, here are the quick instructions.

  • This will use the final configuration (strategy module, environment files, docker compose) to run the backtest and see that the strategy module functions properly.

  • This will generate backtest reports (HTML, notebook, state) for the web frontend

  • The backtest result is saved on the local file system. The result of this backtest run is used to show some of the key metrics (sharpe, sortino, max drawdown) in the web frontend UI via Webhook server.

  • The default generated state file will be state/{id}-backtest.json with other files like HTML report to be shown in the frontend.

You can run the backtest on the live trade executor with:

docker-compose run enzyme-polygon-matic-usdc backtest

And you will get a report like:

Trading period length                      359 days
Return %                                     57.96%
Annualised return %                          58.87%
Cash at start                            $10,000.00
Value at end                             $15,796.42
Trade volume                            $948,224.62
Position win percent                         48.48%
Total positions                                  66
Won positions                                    32
...
Avg realised risk                            -0.96%
Max pullback of total capital                -6.47%
Max loss risk at opening of position          1.02%

Check wallet#

Check that your vault has deposits for test trade.

docker-compose run enzyme-polygon-eth-usdc check-wallet

The output should look like:

2023-05-11 17:27:11 root                                               INFO     Reading strategy strategy/enzyme-polygon-eth-usdc.py
2023-05-11 17:27:11 root                                               INFO     Strategy module strategy/enzyme-polygon-eth-usdc.py, engine version 0.1
2023-05-11 17:27:11 tradeexecutor.cli.bootstrap                        INFO     Dataset cache is /usr/src/trade-executor/cache
2023-05-11 17:27:11 tradeexecutor.ethereum.web3config                  INFO     Chain polygon connects using mihailo2.tradingstrategy.ai
2023-05-11 17:27:11 tradeexecutor.ethereum.web3config                  TRADE    Connected to chain: polygon, node provider: mihailo2.tradingstrategy.ai, gas pricing method: london
2023-05-11 17:27:11 tradeexecutor.ethereum.web3config                  INFO     Using proof-of-authority web3 middleware for chain 137
2023-05-11 17:27:11 tradeexecutor.utils.timer                          INFO     Starting task create_trading_universe at 2023-05-11 17:27:11.395569, context is {}
2023-05-11 17:27:11 tradeexecutor.utils.timer                          INFO     Starting task load_pair_data_for_single_exchange at 2023-05-11 17:27:11.395682, context is {'time_bucket': '1h'}
2023-05-11 17:27:11 tradeexecutor.strategy.trading_strategy_universe   INFO     Using cached data if available
2023-05-11 17:27:13 tradingstrategy.reader                             INFO     Reading Parquet /usr/src/trade-executor/cache/pair-universe.parquet
2023-05-11 17:27:13 tradeexecutor.utils.timer                          INFO     Ended task load_pair_data_for_single_exchange, took 0:00:01.938099
2023-05-11 17:27:13 tradeexecutor.utils.timer                          INFO     Ended task create_trading_universe, took 0:00:01.944877
2023-05-11 17:27:13 root                                               INFO     RPC details
2023-05-11 17:27:13 root                                               INFO       Chain id is 137
2023-05-11 17:27:13 root                                               INFO       Latest block is 42,582,328
2023-05-11 17:27:13 root                                               INFO     Balance details
2023-05-11 17:27:13 root                                               INFO       Hot wallet is <eth_defi.hotwallet.HotWallet object at 0x7f5ba143f9d0>
2023-05-11 17:27:13 root                                               INFO       Vault address is 0x6E321256BE0ABd2726A234E8dBFc4d3caf255AE0
2023-05-11 17:27:13 root                                               INFO       We have 101.844157 tokens for gas left
2023-05-11 17:27:13 root                                               INFO       The gas error limit is 0.100000 tokens
2023-05-11 17:27:13 root                                               INFO       Reserve asset: USDC (0x2791bca1f2de4661ed88a30c99a7a9449aa84174)
2023-05-11 17:27:13 root                                               INFO       Balance of USD Coin (PoS) (0x2791Bca1f2de4661ED88A30C99A7a9449Aa84174): 4.950005 USDC
2023-05-11 17:27:13 tradeexecutor.strategy.runner                      INFO     Setting up routing. Routing model is <tradeexecutor.ethereum.uniswap_v3.uniswap_v3_routing.UniswapV3SimpleRoutingModel object at 0x7f5ba04b0820>, details are {'tx_builder': <tradeexecutor.ethereum.enzyme.tx.EnzymeTransactionBuilder object at 0x7f5ba11c0790>}, universe is <TradingStrategyUniverse for WETH-USDC>
2023-05-11 17:27:13 root                                               INFO     Execution details
2023-05-11 17:27:13 root                                               INFO       Execution model is tradeexecutor.ethereum.uniswap_v3.uniswap_v3_execution.UniswapV3ExecutionModel
2023-05-11 17:27:13 root                                               INFO       Routing model is tradeexecutor.ethereum.uniswap_v3.uniswap_v3_routing.UniswapV3SimpleRoutingModel
2023-05-11 17:27:13 root                                               INFO       Token pricing model is tradeexecutor.ethereum.uniswap_v3.uniswap_v3_live_pricing.UniswapV3LivePricing
2023-05-11 17:27:13 root                                               INFO       Position valuation model is tradeexecutor.ethereum.uniswap_v3.uniswap_v3_valuation.UniswapV3PoolRevaluator
2023-05-11 17:27:13 root                                               INFO       Sync model is tradeexecutor.ethereum.enzyme.vault.EnzymeVaultSyncModel
2023-05-11 17:27:13 tradeexecutor.ethereum.uniswap_v3.uniswap_v3_routing INFO     Routing details
2023-05-11 17:27:13 tradeexecutor.ethereum.uniswap_v3.uniswap_v3_routing INFO       Factory: 0x1F98431c8aD98523631AE4a59f267346ea31F984
2023-05-11 17:27:13 tradeexecutor.ethereum.uniswap_v3.uniswap_v3_routing INFO       Router: 0xE592427A0AEce92De3Edee1F18E0157C05861564
2023-05-11 17:27:13 tradeexecutor.ethereum.uniswap_v3.uniswap_v3_routing INFO       Position Manager: 0xC36442b4a4522E871399CD717aBDD847Ab11FE88
2023-05-11 17:27:13 tradeexecutor.ethereum.uniswap_v3.uniswap_v3_routing INFO       Quoter: 0xb27308f9F90D607463bb33eA1BeBb41C27CE5AB6
2023-05-11 17:27:13 tradeexecutor.ethereum.routing_model               INFO       Routed reserve asset is <USDC at 0x2791bca1f2de4661ed88a30c99a7a9449aa84174>
2023-05-11 17:27:13 root                                               INFO     All ok

Initialise the vault#

This will initialise the state file for the strategy executor.

  • Create a new state file for the strategy

  • Read and sync on-chain information to the state file (smart contract addresses, etc.)

  • Start tracking deposit and redemption information

# Use the deployment block number earlier
docker-compose run enzyme-polygon-eth-usdc init

First vault deposit#

  • After vault is registered it needs the initial deposit e.g. 1 USDC, for a test trade

  • You can do the initial deposit on Enzyme website, or the Python console script below

  • You need deposit some USDC in the vault needed later in the test trade, using Enzyme website and your wallet

  • Enzyme can automatically convert MATIC to USDC and so on

To do the deposit using the console:

docker compose run enzyme-polygon-matic-eth-usdc console

Then with %cpaste:

from decimal import Decimal
from eth_defi.token import fetch_erc20_details
from eth_defi.trace import assert_transaction_success_with_explanation
from eth_defi.enzyme.vault import Vault

print("Using RPC provider", web3.provider)

print(f"Depositing USDC from our hot wallet {hot_wallet.address}")
usdc_address = "0x2791Bca1f2de4661ED88A30C99A7a9449Aa84174"  # USDC.e on Polygon
usdc = fetch_erc20_details(web3, usdc_address)
deposit_amount = Decimal(1.5)
vault_address = state.sync.deployment.address  # init command saves vault address here
assert vault_address, "Vault address not in state, run trade-executor init first"

out_gas_balance = web3.eth.get_balance(hot_wallet.address) / (10**18)
our_usdc_balance = usdc.fetch_balance_of(hot_wallet.address)
assert our_usdc_balance > deposit_amount, f"We have only {our_usdc_balance} USDC at {hot_wallet.address}, we need {deposit_amount} USDC"

print(f"Depositing, we have {out_gas_balance} for gas and {our_usdc_balance} USDC at {hot_wallet.address}")

# Perform approve + deposit from the trade-executor hot wallet
vault = Vault.fetch(web3, vault_address)
tx_hash = usdc.contract.functions.approve(vault.comptroller.address, usdc.convert_to_raw(deposit_amount)).transact({"from": hot_wallet.address})
print(f"Approving in TX {tx_hash.hex()}")
assert_transaction_success_with_explanation(web3, tx_hash)
tx_hash = vault.comptroller.functions.buyShares(usdc.convert_to_raw(deposit_amount), 1).transact({"from": hot_wallet.address})
print(f"buyShares() in TX {tx_hash.hex()}")
assert_transaction_success_with_explanation(web3, tx_hash)
vault_usdc_amount = usdc.fetch_balance_of(vault.address)
print(f"Deposit done, the vault has now {vault_usdc_amount} USDC, you can do perform-test-trade")

Performing a test trade#

Performing a test trade is the final step before starting live trading.

First make sure

  • Your vault has deposits

  • Your hot wallet has native gas token for transaction fees

You can perform a test trade that checks that the trade routing works, opening and closing positions is possible. This command will buy and sell a single trading pair from the strategy, worth of 1 USD.

docker compose run \
    enzyme-polygon-matic-eth-usdc \
    perform-test-trade \
    --all-pairs

The output looks something like:

2023-05-11 21:29:08 tradeexecutor.ethereum.execution                   INFO     Waiting 1 trades to confirm, confirm block count 2, timeout 0:01:00
2023-05-11 21:29:08 eth_defi.confirmation                              INFO     Waiting 2 transactions to confirm in 2 blocks, timeout is 0:01:00
2023-05-11 21:29:21 tradeexecutor.ethereum.execution                   INFO     Resolved trade <Sell #2 0.000556383506855833 WETH at 1795.5241082637904, broadcasted>
2023-05-11 21:29:21 tradeexecutor.cli.testtrade                        INFO     Final report
2023-05-11 21:29:21 tradeexecutor.cli.testtrade                        INFO       Gas spent: 0.111114647238662268
2023-05-11 21:29:21 tradeexecutor.cli.testtrade                        INFO       Trades done currently: 2
2023-05-11 21:29:21 tradeexecutor.cli.testtrade                        INFO       Reserves currently: 4.949005 USDC
2023-05-11 21:29:21 tradeexecutor.cli.testtrade                        INFO       Reserve currency spent: 0.001000000000000334 USDC
2023-05-11 21:29:21 tradeexecutor.state.store                          INFO     Saved state to state/enzyme-polygon-eth-usdc.json, total 41620 chars
2023-05-11 21:29:21 root                                               INFO     All ok

Launch live trading#

Launch the trade executor in daemon mode:

docker-compose up -d enzyme-polygon-eth-usdc

Checking logs#

Logs are available through the web frontend.

You can also check the latest logs from Docker:

docker-compose logs --tail=200 enzyme-polygon-eth-usdc

Backup trade-executor configuration#

After finishing with the vault setup, make sure your configuration files are stored properly.

  • Add edits and new files to Git commit

  • Push changes to Github

Set up web frontend and monitoring#

See the next steps in Website and monitoring.