check_arbitrage_opportunities

Instructions

Implementation Reference

• src/external_market.ts:122-171 (handler)

  The core handler function that fetches CEX price from CryptoCompare API and DEX price from SailFish subgraph, calculates price difference, determines if there's an arbitrage opportunity above the threshold, and returns detailed results including direction and potential profit.

  export async function checkArbitrageOpportunities(threshold: number = 1.0): Promise<{
    cexPrice: number;
    dexPrice: number;
    priceDifference: number;
    priceDifferencePercentage: number;
    arbitrageOpportunity: boolean;
    direction: 'BUY_CEX_SELL_DEX' | 'BUY_DEX_SELL_CEX' | 'NONE';
    potentialProfit: number;
    timestamp: string;
  }> {
    try {
      // Get external market data
      const externalData = await getExternalMarketData();
      const cexPrice = externalData.price;
      
      // Get DEX price from SailFish
      const dexPrice = await subgraph.getEthPrice();
      const dexPriceNumber = parseFloat(dexPrice || '0');
      
      // Calculate price difference
      const priceDifference = Math.abs(cexPrice - dexPriceNumber);
      const priceDifferencePercentage = (priceDifference / Math.min(cexPrice, dexPriceNumber)) * 100;
      
      // Determine arbitrage opportunity
      const arbitrageOpportunity = priceDifferencePercentage >= threshold;
      
      // Determine direction
      let direction: 'BUY_CEX_SELL_DEX' | 'BUY_DEX_SELL_CEX' | 'NONE' = 'NONE';
      if (arbitrageOpportunity) {
        direction = cexPrice < dexPriceNumber ? 'BUY_CEX_SELL_DEX' : 'BUY_DEX_SELL_CEX';
      }
      
      // Calculate potential profit (simplified)
      const potentialProfit = arbitrageOpportunity ? priceDifference : 0;
      
      return {
        cexPrice,
        dexPrice: dexPriceNumber,
        priceDifference,
        priceDifferencePercentage,
        arbitrageOpportunity,
        direction,
        potentialProfit,
        timestamp: new Date().toISOString()
      };
    } catch (error) {
      console.error('Error checking arbitrage opportunities:', error);
      throw error;
    }
  }

• src/index.ts:621-633 (schema)

  Defines the tool name, description, and input schema for check_arbitrage_opportunities, specifying an optional threshold parameter.

    name: 'check_arbitrage_opportunities',
    description: 'Check for arbitrage opportunities between centralized exchanges and SailFish DEX',
    inputSchema: {
      type: 'object',
      properties: {
        threshold: {
          type: 'number',
          description: 'Minimum price difference percentage to consider as an arbitrage opportunity (default: 1.0)',
        },
      },
      required: [],
    },
  },

• src/index.ts:1285-1314 (registration)

  Registers the tool handler in the MCP CallToolRequestSchema switch statement, validates input, calls the external_market.checkArbitrageOpportunities function, and formats the MCP response.

  case 'check_arbitrage_opportunities': {
    try {
      const threshold = typeof args.threshold === 'number' ? args.threshold : 1.0;
      const opportunities = await external_market.checkArbitrageOpportunities(threshold);
      
      return {
        content: [
          {
            type: 'text',
            text: JSON.stringify(opportunities, null, 2),
          },
        ],
      };
    } catch (error) {
      console.error('Error checking arbitrage opportunities:', error);
      return {
        content: [
          {
            type: 'text',
            text: JSON.stringify({ 
              error: 'Failed to check arbitrage opportunities',
              message: (error as Error).message,
              note: 'You may need to update the external market API configuration'
            }, null, 2),
          },
        ],
        isError: true,
      };
    }
  }