find-xemm-opps

What this skill does

# find-xemm-opps

Find Cross-Exchange Market Making (XEMM) opportunities by analyzing order book depth and liquidity across connected exchanges.

XEMM involves quoting on one exchange (the **maker** side) while hedging fills on another (the **taker/hedge** side). The best opportunities exist where:

- One exchange has a **wide spread** and **thin book** (maker side — room to quote profitably)
- Another has a **tight spread** and **deep book** (taker side — cheap to hedge)
- A **mid-price difference** exists between them

## Prerequisites

Hummingbot API must be running with exchange connectors configured:

```bash
bash <(curl -s https://raw.githubusercontent.com/hummingbot/skills/main/skills/lp-agent/scripts/check_prerequisites.sh)
```

## Workflow

### Step 1: Define Token Pair

```bash
# Scan for SOL/USDT XEMM opportunities
python scripts/find_xemm_opps.py --base SOL --quote USDT

# Include fungible equivalents
python scripts/find_xemm_opps.py --base ETH,WETH --quote USDT,USDC

# Filter to specific connectors
python scripts/find_xemm_opps.py --base BTC --quote USDT --connectors binance,kraken,coinbase,okx

# Minimum mid-price spread between exchanges (default: 0.0%)
python scripts/find_xemm_opps.py --base SOL --quote USDC --min-spread 0.05
```

### Step 2: Interpret Results

The script outputs a **market overview table** and ranked **XEMM opportunity pairs**:

```
====================================================================
  XEMM Opportunities — SOL / USDC
  Order book depth: 20 levels | Sources: 18
====================================================================

  Exchange               Pair            Mid     Spread    Bid Depth    Ask Depth    B/A
  ---------------------- -------------- ---------- -------- ------------ ------------ ------
  bitstamp               SOL-USDC         $87.45   0.120%       $23.4K       $18.9K   1.24
  binance                SOL-USDT         $87.51   0.015%      $412.0K      $389.0K   1.06
  okx                    SOL-USDT         $87.56   0.023%      $287.0K      $301.0K   0.95
  ...

  Top XEMM Opportunities (MAKER → hedge on TAKER):
  ----------------------------------------------------------------

  #1  Score: 8.42
      MAKER  bitstamp               $87.45  spread 0.120%  depth $42.3K
      TAKER  binance                $87.51  spread 0.015%  depth $801.0K
      Mid-price gap: 0.0686%  |  Spread ratio: 8.0x  |  Depth ratio: 18.9x
```

**Columns explained:**
| Column | Description |
|--------|-------------|
| Mid | Mid-price between best bid and ask |
| Spread | Bid-ask spread as % of mid |
| Bid/Ask Depth | Total quote value of top-N order book levels |
| B/A | Bid-to-ask depth ratio (>1 = more buy pressure) |
| Spread ratio | Maker spread ÷ taker spread — higher = better maker edge |
| Depth ratio | Taker depth ÷ maker depth — higher = better hedge liquidity |

## Script Options

| Option | Description |
|--------|-------------|
| `--base` | Base token(s), comma-separated (e.g., ETH,WETH) |
| `--quote` | Quote token(s), comma-separated (e.g., USDT,USDC) |
| `--connectors` | Filter to specific connectors (optional) |
| `--depth` | Order book depth per exchange (default: 20) |
| `--min-spread` | Minimum mid-price spread % between exchanges (default: 0.0) |
| `--include-btc-markets` | Include btc_markets (Australian residents only) |
| `--include-ndax` | Include ndax (Canadian residents only) |
| `--json` | Output as JSON |

## Environment Variables

```bash
export HUMMINGBOT_API_URL=http://localhost:8000
export API_USER=admin
export API_PASS=admin
```

Scripts check for `.env` in: `./hummingbot-api/.env` → `~/.hummingbot/.env` → `.env`

## Requirements

- Hummingbot API running
- At least 2 exchange connectors configured with API keys