Example Vault Strategy

This is an example of a trading strategy that trades the funds in a vault.

⚠️ This is an example strategy and is not meant to be used as is in production, you will lose money.

Explanation

How the account permissions work

Accounts on drift can have a delegate. The vault has a drift account, and is able to assign a delegate to it. The delegate is able to sign transactions on behalf of the vault. This is how the strategy will be trading the vault funds.

Strategy

Assumptions on the vault setup:

• vault has some redeem period, so depositors will not withdraw funds immediately
• the deposit token is spot marketIndex 0 (USDC)
• only provides liquidity on SOL-PERP

This vault strategy is a simple market making strategy that quotes around the current oracle price with a 10 bps edge. It provides liquidity with 20% of the vault's available balance (less any pending withdraws).

Usage

1. install dependencies

   git clone git@github.com:drift-labs/drift-vault-example.git
   cd drift-vault-example
   bun install
   

2. set environment variables in a new .env file

   cp .env.example .env
   

3. run the strategy

   bun index.ts
   

Monitoring

Vault Managers are responsible for making sure the vault has sufficient collateral to fulfil depositor withdrawals.

An example script for monitoring a Vault is available in the scripts folder.

To run the script, run the following command:

bun monitor

This project was created using bun init in bun v1.1.9. Bun is a fast all-in-one JavaScript runtime.