Opening a Position

When the entry condition is met, we need to open a position using the solver's instant trading API. More details on this can be found here.

Fetching Price from Muon Oracle

For on-chain verification of price and solvency, we need to fetch the price and a signature from the Muon oracle:

def fetch_muon_price():
    try:
        response = requests.get(MUON_URL)
        data = response.json()
        fetched_price_wei = data["result"]["data"]["result"]["price"]
        return Decimal(fetched_price_wei) / Decimal('1e18')
    except Exception as e:
        print(f"[ERROR] Failed to fetch Muon price: {e}")
        return None

Applying Slippage

Since we're going LONG, we increase the price by 1% to ensure our order gets filled:

# For long positions, add 1% slippage
adjusted_price = fetched_price * Decimal('1.01')

Preparing Trade Parameters

We need to calculate collateral parameters based on the notional value and parameters returned from the get_locked_params solver endpoint.

def fetch_locked_params():
    """Fetch locked parameters for the trade."""
    try:
        response = requests.get(LOCKED_PARAMS_URL)
        response.raise_for_status()
        data = response.json()
        if data.get("message") == "Success":
            return data
        else:
            raise ValueError("Failed to fetch locked parameters")
    except Exception as e:
        print(f"[ERROR] Failed to fetch locked parameters: {e}")
        return None

def calculate_normalized_locked_value(notional, locked_param, leverage, apply_leverage=True):
    """Compute normalized locked value for a given parameter."""
    notional = Decimal(str(notional))
    locked_param = Decimal(str(locked_param))
    leverage = Decimal(str(leverage))
    
    if apply_leverage:
        return str(notional * locked_param / (Decimal('100') * leverage))
    else:
        return str(notional * locked_param / Decimal('100'))

Sending the Trade Request

trade_params = {
    "symbolId": CONFIG["SYMBOL_ID"],
    "positionType": CONFIG["POSITION_TYPE"],  # 0 for long, 1 for short
    "orderType": 1,  # 1 for market order (must be market since we're using instant actrions)
    "price": str(adjusted_price),
    "quantity": CONFIG["QUANTITY"],
    "cva": normalized_cva,
    "lf": normalized_lf,
    "partyAmm": normalized_party_amm,
    "partyBmm": '0',
    "maxFundingRate": CONFIG["MAX_FUNDING_RATE"],
    "deadline": deadline
}

response = requests.post(f"{HEDGER_URL}/instant_open", json=trade_params, headers=headers)

The API will return a temporary quote ID that we'll use to track our order.