Perennial V2 Trigger Orders

Trigger Orders allow users to submit an order to increase or decrease a position when the market price moves above or below a user-chosen limit price. This is accomplished by storing the trigger order onchain, and allowing keepers to execute trigger orders whose entry conditions have been met.

Design

A single Manager is created for each Perennial deployment, accompianied by an OrderVerifier contract to handle signed messages. Users add the Manager as an operator for their account. Trigger Orders are only compatible with markets which use DSU as collateral.

For executing orders and handling signed messages, keepers are compensated from the market in which the order was placed.

Usage

Users (account owners)

All operations may be performed in a gasless manner using signed messages. Users must first deposit collateral into the market in which they wish to interact. This can be done directly or through an extension like Collateral Accounts.

Actions

Place Order

• Ensure your target market has sufficient collateral to support the order. For long or short orders, ensure there is sufficient funding for the order.
• Choose parameters for your order; see contracts/types/TriggerOrder documentation for details.
• Choose a unique-to-you order nonce and record it. Either call placeOrder directly on the Manager, or sign and send a PlaceOrderAction message to a relayer.

Replace Order

• To replace an unexecuted order, call placeOrder or send a PlaceOrderAction using the same order nonce as the unexecuted order you wish to replace. This will overwrite the unexecuted order in storage.

Cancel Order

• Find the order nonce you recorded when the order was placed.
• If the order was placed directly, or your PlaceOrderAction message was handled, call cancelOrder directly on the Manager, or sign and send a CancelOrderAction message to a relayer.
• If you placed the order using a signed message, and this request has not been processed, cancel the message nonce (different than the order nonce) directly with the OrderVerifier contract.

Messages

Domains

Message domain should be set to the Manager contract address.

Nonces

Note the message nonce works independently from the order nonce. If you choose to set message nonce equal to order nonce, you'll need a different scheme to assign nonces to cancellation and replacement messages. For example, you could use a serial order/message nonce, incrementing from 0. But for non-placement messages, you could decrement the serial nonce from type(uint256).max.

Nonces are hashed into each request to ensure the same signed action cannot be replayed. Two types of nonces are specified in every message:

• nonce - used only once, automatically invalidated when message is verified
• group - may be reused across messages, only cancelled manually

The group nonce may be used to atomically cancel multiple actions. Let's explore a few use cases:

1. User doesn't care about group, so leaves it 0 for all actions. Their trading bot malfunctions, spraying relayers with many actions. User may send a message to cancel group 0 to make them all go away. For all future messages, user must specify a nonzero group.
2. User submits several related actions under the same group, enabling them to cancel any unfulfilled actions with a single message.
3. User formats the current UTC date as an integer and uses this for their group nonce. This allows the user to send a single message to cancel all pending actions submitted on the specified date. Granularity could be reduced by formatting year and week number, or increased by including hour with the date.

Keepers

Keepers should:

• Monitor their own relayers looking for EIP712 user messages to handle.
• Watch Manager events and market price changes for opportunities to execute orders. Manager exposes a checkOrder facility which may be called offchain prior to executing. Alternatively, keeper can use a transaction simulation API to confirm the execution will be successful and ensure they will be paid appropriately for transacting.
• Handle requests in a meaningful order:
  • Cancel order requests
  • Execute orders which add liquidity/reduce skew
  • Execute orders which remove liquidity/increase skew
  • Place order requests

Deployment

Manager_Arbitrum and Verifier will be deployed to the target chain.

Development

Prerequisites

Before running any command, make sure to install dependencies. Run this in the root workspace as well to capture package patches:

$ yarn

Compile

Compile the smart contracts with Hardhat:

$ yarn compile

This also generates the Typechain types.

Test

Run the Mocha tests:

$ yarn test
$ yarn test:integration

Coverage

Unit (not integration) tests for this extension are expected to have 100% coverage. To check test coverage:

$ yarn coverage
$ yarn coverage:integration

Gas Report

To get a gas report based on unit test calls:

$ yarn gasReport