Hyperliquid Market Making Bot

A market making bot for Hyperliquid DEX that provides liquidity by continuously quoting buy and sell prices, earning profits from bid-ask spreads.

Overview

Market making bots provide liquidity to decentralized exchanges by:

• Continuously placing buy and sell orders around the current market price
• Maintaining a spread between bid and ask prices
• Earning profits from the spread while facilitating trading
• Managing positions and risk automatically

This bot is designed for high-volume traders who want to automate liquidity provision on Hyperliquid.

Features

• Automated Market Making: Continuously quotes buy/sell prices with configurable spread
• Real-Time Order Book Monitoring: WebSocket integration for live market data
• Position Management: Automatic position tracking and risk management
• Configurable Parameters: Adjustable spread, order size, position limits, and update intervals
• Order Management: Automatic order placement and cancellation
• Error Handling: Robust error handling with automatic reconnection
• Telegram Notifications: Real-time alerts and monitoring via Telegram bot

Prerequisites

• Node.js 16+ and npm/yarn
• TypeScript 5.7+
• Hyperliquid account and API credentials
• Private key for signing transactions

Installation

1. Clone the repository:

git clone <repository-url>
cd hyperliquid-market-making-bot

2. Install dependencies:

npm install
# or
yarn install

3. Create a .env file in the root directory:

# Hyperliquid API Configuration
HYPERLIQUID_API_URL=https://api.hyperliquid.xyz
HYPERLIQUID_WS_URL=wss://api.hyperliquid.xyz/ws

# Trading Configuration
PRIVATE_KEY=your_private_key_here
SYMBOL=ETH
BASE_URL=https://api.hyperliquid.xyz

# Market Making Parameters
SPREAD_PERCENTAGE=0.1
ORDER_SIZE=0.01
MAX_POSITION_SIZE=1.0
UPDATE_INTERVAL_MS=1000
PRICE_TICK_SIZE=0.01

# Telegram Configuration (Optional)
TELEGRAM_ENABLED=true
TELEGRAM_BOT_TOKEN=your_telegram_bot_token
TELEGRAM_CHAT_ID=your_telegram_chat_id

Configuration

Environment Variables

• HYPERLIQUID_API_URL: Hyperliquid REST API endpoint
• HYPERLIQUID_WS_URL: Hyperliquid WebSocket endpoint
• PRIVATE_KEY: Your private key for signing transactions
• SYMBOL: Trading pair symbol (e.g., ETH, BTC)
• SPREAD_PERCENTAGE: Spread percentage (e.g., 0.1 for 0.1%)
• ORDER_SIZE: Size of each order in base currency
• MAX_POSITION_SIZE: Maximum position size allowed
• UPDATE_INTERVAL_MS: How often to update quotes (milliseconds)
• PRICE_TICK_SIZE: Minimum price movement
• TELEGRAM_ENABLED: Enable/disable Telegram notifications (true/false)
• TELEGRAM_BOT_TOKEN: Your Telegram bot token from @BotFather
• TELEGRAM_CHAT_ID: Your Telegram chat ID for receiving notifications

Usage

Development Mode

npm run dev

Production Mode

npm run build
npm start

How It Works

1. Initialization: The bot connects to Hyperliquid API and WebSocket, fetches current order book and position
2. Market Making Loop:
   • Calculates mid price from current order book
   • Places bid order below mid price and ask order above mid price
   • Maintains configured spread percentage
   • Updates orders periodically based on market conditions
3. Position Management: Monitors position size and prevents exceeding limits
4. Order Management: Automatically cancels and replaces orders to maintain quotes

Telegram Integration

The bot includes comprehensive Telegram notifications for monitoring and control:

Setup

1. Create a Telegram bot by messaging @BotFather on Telegram
2. Get your bot token from BotFather
3. Get your chat ID by messaging your bot and visiting: https://api.telegram.org/bot<YOUR_BOT_TOKEN>/getUpdates
4. Add the credentials to your .env file

Features

• Real-time Notifications: Receive alerts for:
  • Bot start/stop events
  • Order placements and fills
  • Order cancellations
  • Position updates
  • Errors and warnings
  • Position limit alerts

Commands

You can interact with the bot via Telegram commands:

• /start - Start the bot and see available commands
• /help - Show help message
• /status - Get current bot status, configuration, and position
• /position - View detailed position information
• /orders - List all active orders

Notifications

The bot automatically sends notifications for:

• 🚀 Bot startup
• 🛑 Bot shutdown
• 🟢 Buy orders placed/filled
• 🔴 Sell orders placed/filled
• ❌ Order cancellations
• 📈 Position updates
• 🚨 Alerts (position limits, errors)
• ⚠️ Error messages

Risk Management

• Maximum position size limits prevent excessive exposure
• Automatic order cancellation on shutdown
• Position monitoring and warnings
• Configurable risk parameters

Important Notes

• Test thoroughly on testnet before using real funds
• Start with small position sizes
• Monitor the bot closely
• Understand the risks involved
• The creators are not responsible for any financial losses

API Integration

This bot uses the Hyperliquid API. You may need to:

1. Sign up for Hyperliquid API access
2. Generate API keys
3. Implement proper authentication/signing based on Hyperliquid's requirements
4. Adjust API endpoints and request formats based on the latest Hyperliquid documentation

Note: The current implementation includes placeholder API calls. You'll need to implement the actual Hyperliquid API integration based on their official documentation.

Contributing

Contributions are welcome! Please:

1. Fork the repository
2. Create a feature branch
3. Make your changes
4. Submit a pull request

License

ISC

Support

For issues, questions, or contributions, please open an issue on the repository.