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Rainbow is a dashboard for Decentralized Finance options trading. It's developed during Solana's Ignition & Ethereum's EthGlobal Hackathons by members of Teal.Finance. |
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Motivation
The crypto derivatives markets are expected to grow a lot more in the upcoming years. Specifically, the options markets will see the bigger growth.
In traditional finance, option market is much bigger than the underlying assets market. This is lagging in Crypto, when we look at Deribit's volume, the main (centralized) venue for Crypto Options, compared to Perpetuals future.
Rainbow profits from the following trends:
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Crypto-assets and DeFi becoming mainstream,
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DeFi composability & complexity abstraction for easy onboarding of users,
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Advent of the Internet of Blockchains’ world with more cross-chain applications and communications,
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Crypto options trading growing (hopefully) bigger than the spot market, like in tradFi.
Target
Rainbow is a first step in that direction: a place where users, traders and market makers can see the options, prices, expiries, liquidities across layers L1/L2.
Current status
The current version is a tool to compare market data across multiple venues, CEX and DEXes.
Deribit is supported since the beginning, because Deribit is the main options trading place.
Opyn is also supported, because we are active users of this protocol. Opyn use the 0x Protocol for the exchange of their options. Rainbow uses both Opyn and 0x APIs to retrieve their trading data. TheGraph is also used to list the available options from Opyn.
Most recently, PsyOptions (from the Solana ecosystem) has also been integrated. PsyOptions is the main DeFi options protocol.
More Ethereum and Solana protocols are planed to also be supported in the near future: Thales, Lyra, Hegic...
Now, using Rainbow, you can compare to arbitrage options across these markets, or simply get the best prices.
Technology
The back-end is developed in Go.
Deribit API is well documented, and the data retrieval was pretty straightforward to implement. Deribit even have an API playground, which all projects should also provide.
To support Opyn, Rainbow retrieves the options list using the TheGraph API. This is our first GraphQL client implementation in Go and we spent days to test and compare the different solutions: we are proud to use the GraphQL state-of-the-art in Go, based on the library https://github.com/Khan/genqlient with type-safe code generation. We got help from the Opyn team for the query examples.
Opyn support also requires to use the 0x protocol. We have battled to correctly get the bid/ask prices from 0x API. We got some help from the 0x team to identify which API call was the most suitable. This help advances our work a lot and enables us to add, in a near future, other protocols like Thales.
To support PsyOptions, we took our first plunge in the Solana ecosystem to understand and use the Serum Go library.
See also the Go documentation: https://pkg.go.dev/github.com/teal-finance/rainbow
Next step is to implement on a proper UI that enables users to trade, based on Typescript/Vue3.
Build
git clone https://github.com/teal-finance/rainbow
cd rainbow
go generate ./...
CLI
You may just use the pretty nice table printed by the command ./cli.
go build ./cmd/cli && ./cli
Back-end
If you prefer the API, use ./server.
go build ./cmd/server && ./server -dev
The flag -dev enables CORS for http://localhost:*.
Front-end
This project also provides a pretty nice Vue3 front-end that uses the API.
cd frontend
yarn
yarn dev
Container
See also the Dockerfile for a light container image: 30 MB.
The image contains the hardened sever executable (with dynamic library) and the front-end.
The container enables by default the CORS, the export ports and a rate limiter. Some of these features can be customized using environments variables.
The Dockerfile has been successfully tested with Docker-20.10.8 and Podman-3.3.1.
API
Command line flags
Rainbow provides a complete HTTP server, including a rate limiter, an export port (Prometheus monitoring), and more. For more details see the underlying project Teal.Finance/Server.
$ go build ./cmd/server
$ ./server -help
Usage of ./server:
-burst int
Max requests during a burst, has precedence over REQ_BURST (default 10)
-dev
Run rainbow in dev. mode
-dns string
Schema and DNS used for doc URL and CORS, has precedence over MAIN_DNS (default "http://localhost")
-exp int
Export port for Prometheus, has precedence over EXP_PORT
-opa string
Policy files (comma-separated filenames) for the Open Policy Agent using the Datalog/Rego format
-port int
API port, has precedence over MAIN_PORT (default 1234)
-rate int
Max requests per minute, has precedence over REQ_PER_MINUTE (default 30)
-www string
Folder of the web static files, has precedence over WWW_DIR (default "./dist")
Data structure
The API endpoint /v0/options replies an array of options. Each option is described with the following JSON structure:
{
"Name": "ETH-2021-10-29 23:59:59-3200-PUT",
"Expiry": "2021-10-29 23:59:59",
"Type": "PUT",
"Asset": "ETH", // ETH, BTC, SOL
"Strike": 3200,
"ExchangeType": "DEX", // CEX or DEX
"Chain": "Solana", // Ethereum, Solana...
"Layer": "L1",
"Provider": "PsyOptions", // Opyn, Lyra, Thales, Deribit, Psyoptions
"Bid": [
{
"Price": 13.3,
"Quantity": 5,
"QuoteCurrency": "USDC" // ETH, BTC...
},
{
"Price": 13.1,
"Quantity": 10,
"QuoteCurrency": "USDC"
}
],
"Ask": [
{
"Price": 15.12,
"Quantity": 5,
"QuoteCurrency": "USDC"
},
{
"Price": 15.25,
"Quantity": 9,
"QuoteCurrency": "USDC"
}
]
}
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