Dust streams aim to identify situations where the flow rate is so minimal that the resulting insolvency is insignificant (eg. less than 1 cent over an extended period). By detecting and categorizing these low-value streams, we can implement an optimization strategy that allows us to disregard them, thus preventing expensive and unnecessary liquidations.
Thresholds
To enable this optimization over dust streams, we have introduced a new configuration file called threshold.json to set individual threshold values for each token and network they operate on. This is a flexible solution that allows Sentinels to align the optimization with their specific requirements while ensuring compatibility across all 3P slots.
When the sentinel instance is booted up, between all necessary steps we now include saving this information to the database. If the file doesn't exist we default to normal behaviour if it doesn't exist.
The sentinel will continue tracking all streams running independently of threshold configurations. This allows the sentinel operator to change the file and resume operations very fast with just a simple reboot in the case of threshold file updates.
File Format
This file is pretty self-explanatory
{
"schema-version": "1",
"name": "sentinel-threshold",
"networks": {
"137": {
"name": "Polygon",
"minSentinelBalanceThreshold": "100000000000000000000",
"thresholds": [{
"address": "0xCAa7349CEA390F89641fe306D93591f87595dc1F", // SuperToken address
"above": "3858024691" // Threshold amount to be considered.
}]
}
}
}
What I expect to be the outcome
Have more efficiency overall. Sentinel can now fine-tune the optimizations based on their unique circumstances ensuring that streams falling below the defined threshold will be disregarded and maintain the necessary level of attention and action for higher value streams.
Creating the right balance that should be carefully balanced between optimizing Sentinel operations and managing gas prices effectively. During high gas prices, this feature can save valuable resources that are better allocated to higher-value streams. Each Sentinel operator has different requirements and this seamless simple solution considers that.
We also have a positive side effect for Plebs and Pirates.
By introducing the ability for Plebs and Pirates to control profitability and optimize their liquidation strategies, the network may experience increased efficiency and improved resource allocation as now they can cherry-pick the streams they want to participate in.
However, it's important to strike a balance between profitability and insolvency to maintain a healthy ecosystem. Continuous evaluation and adjustment will be necessary to optimize the long-term sustainability and effectiveness of the network.
Some tips
If you are a Sentinel operator (independently of 3P) you should set sensible threshold amounts. By not doing so you can end up in a situation of draining your sentinel balance account by trying to close dust streams that the network is ignoring.
Dust streams are a concept very tight with gas price cost that we didn’t explore in this post. Keep in mind that a dust stream today can be rewarding later on depending on network conditions. For a fine grain control check MAX_GAS_PRICE configuration.
PIC can probably benefit from running a specific sentinel for dust streams if MAX_GAS_PRICE is set to a low limit. The idea is to close dust streams only if network conditions are favourable.