PSP-IPΔX - Add Limit Orders using KeeperDAO (ROOK)

PS Research
1

Keywords
New Feature, Integration, User Interface.

Simple Summary
KeeperDAO is a decentralized way of creating MEV resistant order books. These Order Books can be used by Paraswap to instill Limit Orders, a QOL update for ParaSwappers.

Context
KeeperDAO would be a fairly simple upgrade with clearly laid out instructions. Limit Orders are a basic tool for most traders and we should continue to seek to give the best user experience possible.

Goals

  • Add support for Limit Orders using KeeperDAO.
  • Provide greater flexibility for Traders.

Rationale

A Limit Order is an order that says to buy or sell an asset at a specified price. Limit Orders are an essential part of trading and would benefit the end users on the platform. The only problem that usually arises with limit orders is typically the issue of MEV and front-running.

Enter KeeperDAO (ROOK) is a project that uses the power of coordination and bots to create more efficient markets by capturing and recycling MEV to end users and protocols. One of the primary products of the Keeper Network is “The Hiding Book”.

The Hiding Book essentially serves as an off-chain order book that holds orders only fillable by KeeperDAO Keepers. Keepers fill these orders either with other orders or by arbitraging against liquidity from multiple sources (DEXs/CEXs).

“Integrating a client with the Hiding Book enables the client’s users to coordinate with KeeperDAO Keepers for the capture of MEV (Miner Extractable Value). This is a win-win because both users and Keepers are working together to maximize profit generation from a trade the user was going to perform anyways. The profits generated are returned back to the user in ROOK tokens. “

The Hiding Book can be better visualized with the picture below.

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In the BancorDAO we actually had this exact integration so we can already get a good sense of what it would look like on ParaSwap by looking at the UI there.

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Means

Voting Options

  • Accept Limit Order - KeeperDAO Integration.
  • Reject Limit Order - KeeperDAO Integration.
  • Abstain.
11 Likes
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In full support of this partnership. The KeeperDAO team can take immediate action on this!

2 Likes
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It’s an very interesting mecanim , it can help a lot to make more volume ! thx for the proposal

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I was asking for it, its a big yes for me

Thanks @Tenzent and @Rook-team

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Thank you for the proposal on the integration of a limit order. This is a feature that is much requested by the community.

Now I would like to make sure I understand how KeeperDAO works after reading the doc :

They assume that in any case our transaction will be frontrun so they frontrun our transaction themselves, paying us 80%.

Isn’t that too strong an assumption? I know we can avoid MEV attacks with ParaSwapPools, maybe there is something to explore with the limits order.

2 Likes
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Think of it like this, you set an order to buy ETH at 3,000$. That order is sent to the Keepers. When prices are at your target the keepers arbitrage the different forms of liquidity to fill ur order. Let’s say for example one of these Keepers(Bots) sees the price of ETH at 2998$. The Keeper Buys the ETH and fills ur order, earning himself the profit in the price difference. One major advantage of this is that the Keeper covers the gas, so all these limit orders are gas-less and have 0 slippage.

Essentially think like this. You want 3000$ worth of ETH, The miner got it at a price of 2998$. 3000-2998 = 2$ * 80% = 1.6$ is Rewarded to you in the form of $ROOK on top of your limit order being filled. Correct me if I’m wrong @Deetz. (Deetz is from the ROOK Team)

1 Like
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Ah thank you I see much more clearly now! It seems to me a very good idea. And then potentially aggregate several limit order solutions and present the best one to the user.

1 Like
8

Bumping this topic up because I find it a very interesting integration that could add a much requested functionality!

Just got a couple questions which I’d like to just make sure on:

  • Other than integrating the dApp, are there any additional resources required (PSP, other developmental costs).

  • Would this integration only be available on Ethereum? I assume so because of the liquidity pools, but was wondering since the hiding pool is offchain.

Other than that, I guess the only big doubt would be the security of the protocol, but since I am not familiar with the auditors of KeeperDAO I cannot comment on it.

1 Like
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KeeperDAO is great! If they can build an integration for ParaSwap where the orders will settle on our smart contracts, it will be amazing. On paraswap.io, we cannot commit to integrating KeeperDAO since we have to follow certain guidelines/roadmap… it’s one of many UIs, so it’s not governable by the DAO. However, we can give grants/help devs willing to build this integration if it’s using ParaSwap somehow.

3 Likes
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I do not believe there would be any developemental costs unless we issue some type of grant as mouph has pointed out, and yes just ethereum from now.

I’ll message them and ask to reply here! We could also outsource the grant to a different org perhaps through some decentralized means like keep3rs. really looking forward to this.

1 Like