Basis is implements a delta-neutral funding rate arbitrage between Hyperliquid perpetual futures and Unichain spot markets. Its written in Python and Rust. It uses the Tycho library for spot execution.

ℹ️ Project Background: Built for a Tycho Application bounty – TAP 7. Join developers using Tycho in tycho.build.

Basis consists of two main components:

1. Tycho Swap Service (Rust): A long-running service that continuously indexes DEX pools and provides real-time quotes
2. Strategy Engine (Python): Executes the funding rate arbitrage strategy by calling the Tycho service

Understand how the strategy works here.

The easiest way to run Basis is using Docker:

# Create .env file from template
cp .env.example .env

# Edit .env with your credentials
nano .env  # or use your preferred editor

# Build and run the strategy
docker-compose up --build

This single command will:

• Build the Docker container with all dependencies
• Start the Tycho indexing service with auto-restart
• Wait for the service to be ready
• Launch the funding rate strategy with error recovery
• Automatically restart both services on failure

# View logs
docker-compose logs -f

# Stop the strategy
docker-compose down

# Run with unwind flag
docker-compose run --rm tycho-hedge --unwind

# Restart if needed
docker-compose restart

If you prefer to run without Docker:

# Use python 3.10
pip install -r requirements.txt

# Create a .env file based on .env.example
cp .env.example .env
# Edit .env with your credentials

# Start the Tycho indexing service (runs continuously)
./start_tycho_service.sh

The service will:

• Index DEX pools on your chosen chain (default: Unichain)
• Provide real-time quotes via HTTP API on port 3000
• Maintain up-to-date pool state for fast swaps

# Run the funding rate strategy
python main.py

The service exposes the following endpoints:

• GET /health - Check service health and see number of indexed pools
• POST /quote - Get best quote for a token swap
• POST /execute - Execute a token swap

# Check if service is healthy
curl http://localhost:3000/health

# Get a quote
curl -X POST http://localhost:3000/quote \
  -H "Content-Type: application/json" \
  -d '{
    "sell_token": "0x078d782b760474a361dda0af3839290b0ef57ad6",
    "buy_token": "0x4200000000000000000000000000000000000006",
    "sell_amount": 100.0
  }'

Add these to your .env file:

look at the PARAMETERS.md file and .env.example for more information on the parameters

To unwind the strategy, run the following command:

python main.py --unwind

A simple Streamlit dashboard is included for monitoring the strategy in real-time.

# Install extra dependencies (already listed in requirements.txt)
pip install -r requirements.txt

# Run the dashboard
streamlit run dashboard.py

The dashboard visualises:

• PnL (absolute & percent) relative to the first recorded state
• AUM (total value across chains)
• Price of the underlying asset
• A neon-green line chart of PnL over selectable time ranges (1D, 1W, 1M, 3M, All)
• A table of recent trades inferred from changes in perp position size

The dashboard is strictly read-only – it does not expose any trade or “Manage Position” actions.