Planemo Trading

quantitative algorithmic trading platform for perpetual futures. alpha live on hyperliquid (hip3), extended, grvt & lighter. stat arb:

[Planemo Trading @PlanemoTrading]

We at @PlanemoTrading were among the first 15 users to implement priority fees on @HyperliquidX for internal testing and are a top10 wallet by fees spent so far.

From our own tests across 1,000+ transactions, we can see that this update serves effectively as a speedbump for IOC orders on HIP3.

Our latency increased by roughly the 8x45ms that is outlined in the docs as maximum possible speed increase.

It would be interesting to analyze the current user base of priority fees to find out what strategies are being run that justify implementation.

The docs mention the reasoning behind priority fees is to prevent the escalation of an arms race of ultra-fast market makers.

We are not ultra-fast nor a market maker.

We so far don't see the value of paying 8bps extra just to get the speed we got "for free" a week ago.

Our strategy does not necessarily benefit from being faster than other takers, but it certainly hurts performance if we are slower while order cancel/refresh stays the same as pre-update.

So looks like some strategies could end up as collateral damage here as an unintended (?) side effect.

[Yaugourt.hl @Yaugourt]

Priority fees update.

Live on mainnet for 4 days now. Here's what the data shows.

Last 24h:

Total priority gas burned: 50.41 HYPE
Fills with priority: 267,323
Annualized burn (linear): 18.40K HYPE
Avg priority gas: 0.000189 HYPE
Max single priority gas: 0.318423 HYPE

Who's paying:

0x3999...3336 · 29.54 HYPE · 83,333 fills · ~59% of all priority gas
0xefd3...28df · 12.78 HYPE · 11,090 fills
0x10fb...632c · 3.60 HYPE · 346 fills
0x57dd...494b · 3.10 HYPE · 2,871 fills
0xce97...7e78 · 0.66 HYPE · 106,929 fills

What's interesting in the activity feed:
cash:TSLA, cash:SILVER, xyz:BIRD, xyz:MSTR, xyz:EWY, hyna:SUI. Priority gas is being used across HIP-3 equities, commodities, crypto, and spot. Not concentrated on one pair, spread across the board.

Compared to day 2 data (first tweet):

Total priority gas: 14.56 to 50.41 HYPE (+246%)
Fills with priority: 102,424 to 267,323 (+161%)
Max priority gas: 0.141 to 0.318 (+126%)

Number of active payers growing, top payer share dropping from 86% to 59%

Usage is spreading. More wallets paying, across more instruments, with higher max bids. Still early but the trend is clear.

For context:
My earlier projections had the LOW scenario at ~810 HYPE/day. We're at 50.41 HYPE/day after 4 days. Below LOW but growing fast. If the current growth rate holds for a few weeks, LOW scenario becomes realistic quickly.

Track it live: https://t.co/iilZuxLUGi

Powered by @hypedexer

Hyperliquid.

[Planemo Trading @PlanemoTrading]

HIP-3 algo is getting better every week.

That's 60%++ APR plus thousands of invisible points.

100% delta-neutral. Max drawdown <1%.

[Planemo Trading @PlanemoTrading]

Haven't posted on here in over a week.

Why not?

We are an extremely small team and every post here cuts away time from engineering work.

Good news is that we used the time well, and a new exchange integration will go live on Wednesday.🎨

The offering there will include our statistical arbitrage strategy, which will mark the first time we offer this quantitative algo outside of HIP-3.

[Planemo Trading @PlanemoTrading]

First day on HIP-4.

Accounted for ~20% of total volume in yesterday's new range market.

This will be huge.

Wen leverage?

[Planemo Trading @PlanemoTrading]

When you read about latency tests of perp dexes, those are usually done in a vacuum, not in a production system with up to hundreds of orders per second and across 100+ users.

It took us almost 2 weeks to get to this level of latency for our upcoming @extendedapp <> @HyperliquidX stat arb algo.

Right now around 30% of orders fill within <250ms of submit timestamp, with 95% being faster than HL (without priority fees), which is good enough for our purposes given the conservatively edge decay model.

It's very frustrating to not make (visible) progress for many days in a row. Then one day you refresh your dashboard and see data like this after your latest update.

[Planemo Trading @PlanemoTrading]

Learned this the hard way 2 months or so ago.

We now have a circuit breaker on weekends that stops any entries and exits if price is out of bounds, especially if reset maximum (2 for OIL) has been reached.

Especially painful if your hedged leg on @Dreamcash or any other HIP3 providers goes through, but one venue keeps on failing (xyz here).

Even reading through all docs multiple times, it's difficult to understand how and what is happening unless you observe it live and pay the tuition.

Not sure about your 10x issue tho.

[Planemo Trading @PlanemoTrading]

Just beautiful to live observe a trade open (lowest 2 rows) and then close within 10 minutes, with each closing creating net PnL.

This one here printed $2 in net PnL on $12,000 volume (or 1.67bps measured against volume).

All within 10 minutes and 0 manual input.

[Planemo Trading @PlanemoTrading]

Livestreaming profits

[Planemo Trading @PlanemoTrading]

HIP-4 markets continue being fun with steady profits.

However, we are already clearly seeing edge decay compared to day 1, and this will only get (much) worse in the coming weeks.

It's much easier to build a basic working algo for prediction markets which can run at least at break-even compared to regular markets.

Not to mention the possibility of a fee switch activated at any time.

The true opportunity will likely be in cross-exchange.

But for now, it's a fun little stream of bonus bps which could still grow into something big once more markets are launched.

[Planemo Trading @PlanemoTrading]

HIP-4 internal basket arb update:

Here you can see the last 1.5 hours for the BTC range market.

1 tick = 50ms

"Historically" (as in the last few days), the biggest opportunity was in buying the "NO" in all 3 markets for below $2, for a guaranteed $2 outcome.

This happens much more frequently than getting all 3 "YES" for <$1.

As you can see, there were some opportunities, especially in the very "on the margins" range of 1.995 - 2.000.

But since liquidity is so limited right now, and we are definitely not the only ones running this basic strategy, the risk of something going wrong (mainly no fills on one of the legs, or bad fills) already makes this not very attractive.

For reference: On day 1, you could buy $2 for <$1.70 for several hours. Even <$1.50 in the first few hours after launch.

We are looking forward to more markets launching and hopefully being able to construct a much more advanced strategy that can create a higher, sustained edge.

[Planemo Trading @PlanemoTrading]

@BittexXBT follow us

[Planemo Trading @PlanemoTrading]

Livestreaming profits

[Planemo Trading @PlanemoTrading]

Just beautiful to live observe a trade open (lowest 2 rows) and then close within 10 minutes, with each closing creating net PnL.

This one here printed $2 in net PnL on $12,000 volume (or 1.67bps measured against volume).

All within 10 minutes and 0 manual input.

[Planemo Trading @PlanemoTrading]

Just beautiful to live observe a trade open (lowest 2 rows) and then close within 10 minutes, with each closing creating net PnL.

This one here printed $2 in net PnL on $12,000 volume (or 1.67bps measured against volume).

All within 10 minutes and 0 manual input.

[Planemo Trading @PlanemoTrading]

We aim for 0.1% daily or 50% APY, that was a pretty good week.

Capacity on HIP3-only right now: Best guess is probably more than $3M, less than $10M at current volumes. Growth of HIP3 could increase capacity in the future.

Currently around $400k TVL only.

We'll solve those constraints by going multi-exchange.

[Planemo Trading @PlanemoTrading]

our quant algo on @HyperliquidX continues to print.

now launching on @extendedapp in the next few days.

early results look even better than this.

[Planemo Trading @PlanemoTrading]

@RedShouldHawk Yes, we only have stat arb on Hyperliquid.

However @HyperTracker also afaik includes non-perp PnL (e.g. staked HYPE) in this overview.

Some users also manually trade on their algo accounts (they shouldn't) which can also influence PnL.

[Planemo Trading @PlanemoTrading]

Good weekend for 78% of our users

[Planemo Trading @PlanemoTrading]

Not sure if it's just less competition and/or thinner books on the weekend...

But a single Saturday or Sunday often outperforms Mon - Fri combined.

That's on an account with 0% fee discounts + builder fees, easily running on 2bps+ with some staked HYPE.

[Planemo Trading @PlanemoTrading]

our quant algo on @HyperliquidX continues to print.

now launching on @extendedapp in the next few days.

early results look even better than this.

[Planemo Trading @PlanemoTrading]

Learned this the hard way 2 months or so ago.

We now have a circuit breaker on weekends that stops any entries and exits if price is out of bounds, especially if reset maximum (2 for OIL) has been reached.

Especially painful if your hedged leg on @Dreamcash or any other HIP3 providers goes through, but one venue keeps on failing (xyz here).

Even reading through all docs multiple times, it's difficult to understand how and what is happening unless you observe it live and pay the tuition.

Not sure about your 10x issue tho.

[RunnerXBT @RunnerXBT]

Its hilarious I got all Hyped up (no pun intended) about trading on HL and shilled it everywhere

just to get his with some bullshit and position randomly 10x-ing in size during "?pause?"

for trading to "resume" with a gap down

lmfao, generationally cursed legit

[Planemo Trading @PlanemoTrading]

Not sure if it's just less competition and/or thinner books on the weekend...

But a single Saturday or Sunday often outperforms Mon - Fri combined.

That's on an account with 0% fee discounts + builder fees, easily running on 2bps+ with some staked HYPE.

[Planemo Trading @PlanemoTrading]

POV

Enjoying the weekend while algorithmically accumulating profits with minimal drawdown.

100% delta-neutral, too.

Our profitable stat arb algo will go multi-exchange in the coming days and weeks.