Market Making Bot

import {
  DriftClient,
  User,
  BulkAccountLoader,
  getLimitOrderParams,
  PositionDirection,
  PostOnlyParams,
  calculateBidAskPrice,
  convertToNumber,
  BASE_PRECISION,
  PRICE_PRECISION,
  QUOTE_PRECISION,
  BN,
} from '@drift-labs/sdk';

class SimpleMarketMaker {
  private driftClient: DriftClient;
  private user: User;
  private marketIndex: number;
  private spreadBps: number; // Spread in basis points
  private orderSize: BN;
  
  constructor(
    driftClient: DriftClient,
    user: User,
    marketIndex: number,
    spreadBps: number = 10, // 0.1%
    orderSize: number = 1 // 1 SOL
  ) {
    this.driftClient = driftClient;
    this.user = user;
    this.marketIndex = marketIndex;
    this.spreadBps = spreadBps;
    this.orderSize = new BN(orderSize).mul(BASE_PRECISION);
  }

  async run() {
    console.log('Market maker starting...');
    
    // Update quotes every 5 seconds
    setInterval(async () => {
      try {
        await this.updateQuotes();
      } catch (error) {
        console.error('Error updating quotes:', error);
      }
    }, 5000);
  }

  async updateQuotes() {
    // Get current market data
    const perpMarket = this.driftClient.getPerpMarketAccount(this.marketIndex);
    const oracleData = this.driftClient.getOracleDataForPerpMarket(this.marketIndex);
    const oraclePrice = oracleData.price;

    // Calculate bid/ask around oracle price
    const spreadAmount = oraclePrice
      .mul(new BN(this.spreadBps))
      .div(new BN(10000));
    
    const bidPrice = oraclePrice.sub(spreadAmount);
    const askPrice = oraclePrice.add(spreadAmount);

    console.log('\nUpdating quotes:');
    console.log('  Oracle:', convertToNumber(oraclePrice, PRICE_PRECISION));
    console.log('  Bid:', convertToNumber(bidPrice, PRICE_PRECISION));
    console.log('  Ask:', convertToNumber(askPrice, PRICE_PRECISION));

    // Cancel existing orders
    await this.driftClient.cancelOrders(
      MarketType.PERP,
      this.marketIndex
    );

    // Place new bid
    const bidOrder = getLimitOrderParams({
      marketIndex: this.marketIndex,
      direction: PositionDirection.LONG,
      baseAssetAmount: this.orderSize,
      price: bidPrice,
      postOnly: PostOnlyParams.MUST_POST_ONLY,
    });

    // Place new ask
    const askOrder = getLimitOrderParams({
      marketIndex: this.marketIndex,
      direction: PositionDirection.SHORT,
      baseAssetAmount: this.orderSize,
      price: askPrice,
      postOnly: PostOnlyParams.MUST_POST_ONLY,
    });

    // Place both orders
    await this.driftClient.placeOrders([bidOrder, askOrder]);
    console.log('  Orders placed');

    // Check inventory
    await this.checkInventory();
  }

  async checkInventory() {
    const position = this.user.getPerpPosition(this.marketIndex);
    
    if (position) {
      const size = convertToNumber(position.baseAssetAmount, BASE_PRECISION);
      console.log('  Position size:', size);
      
      // Adjust quotes if inventory gets too large
      if (Math.abs(size) > 10) {
        console.warn('  ⚠️ Large inventory - consider adjusting');
      }
    }
  }
}

// Run the market maker
async function main() {
  // Initialize DriftClient and User (see guides/initialization for setup)
  const driftClient = /* initialize your DriftClient */ ;
  const user = /* initialize your User */ ;

  // Create market maker for SOL-PERP
  const marketMaker = new SimpleMarketMaker(
    driftClient,
    user,
    0, // SOL-PERP market index
    10, // 0.1% spread
    1 // 1 SOL per order
  );

  // Start market making
  await marketMaker.run();
}

main().catch(console.error);