🐢 Hatch - Flash Loan & Arbitrage Protocol on Sui

Where advanced DeFi strategies hatch from Carapace's core infrastructure

Status: 🚀 Production Ready | Network: Sui Blockchain | Language: Move 2024 Edition

Flash loan protocol with cross-DEX arbitrage and leveraged yield farming capabilities, built by TortoiseOS.

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⚡ Quick Start

Deploy to Testnet (Fastest)

# One-command deployment of Carapace + Hatch
./scripts/deploy-integrated.sh

# Create your first flash loan pool
./scripts/create-flash-pool.sh

# Test it out
source .env.testnet
bun run packages/strategy-sdk/examples/flash-loan-basic.ts

Quick reference: DEPLOYMENT-QUICKSTART.md Full integration guide: docs/INTEGRATION.md

Alternative: Task-based Setup

# Interactive setup guide
task quick-start

# Generate configuration
task config:generate testnet

# Deploy to testnet
task setup:testnet

# Monitor pools
task monitor:pools

Full guide: LAUNCH_CHECKLIST.md - Get to production in 7 days

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🏗️ Core Features

🔥 Flash Loans

• Hot Potato Pattern: Sui-native flash loans with compile-time repayment guarantees
• 0.05% Fee: Competitive flash loan fees (5 basis points)
• Capital Efficient: Leverage without upfront capital
• Guaranteed Repayment: Compile-time enforcement via hot potato pattern
• Full Test Coverage: 14/14 flash loan tests passing

🤖 Cross-DEX Arbitrage

• Multi-DEX Support: Unified interface for Cetus, Turbos, and more
• Atomic Execution: Flash loan + multi-hop swap in single transaction
• Slippage Protection: Configurable slippage tolerance
• Profit Optimization: Gas-efficient execution
• Full Test Coverage: 16/16 arbitrage tests passing

📈 Leveraged Yield Farming

• 1.5x - 5x Leverage: Flexible leverage on farming positions
• Health Monitoring: Real-time liquidation risk tracking
• Automated Management: Position health monitoring
• Liquidation Protection: Configurable health factor thresholds
• Full Test Coverage: 14/14 strategy tests passing

🔌 DEX Adapters

• Unified Interface: Common API for all DEX integrations
• Cetus Adapter: Concentrated liquidity pools
• Turbos Adapter: Constant product AMM
• Extensible: Easy integration for new DEXs

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🚀 Production Deployment

Prerequisites

• Bun >= 1.1.0
• Sui CLI >= 1.0.0
• Task (optional but recommended)

Testnet Deployment

# Quick deployment
task setup:testnet

# Or step-by-step
task config:generate testnet
task config:validate
task deploy:testnet
task pool:create:all
task deploy:verify

Mainnet Deployment

# Full deployment with safety checks (includes 5-second delay)
task setup:mainnet

# Or controlled
task config:generate mainnet
task deploy:check
task deploy:mainnet
task pool:create:all

Deployment Guide: DEPLOYMENT.md (696 lines)

Project Structure

hatch/
├── move/
│   └── sources/
│       ├── flashloan/          # Flash loan modules
│       │   ├── flash_pool.move
│       │   └── flash_pool_tests.move
│       ├── arbitrage/          # Arbitrage executors
│       ├── strategies/         # Yield strategies
│       │   └── leveraged_farm.move
│       └── common/             # Shared utilities
│
├── apps/
│   ├── web/                    # Next.js frontend
│   ├── api/                    # Express API
│   └── bot/                    # Arbitrage bot
│       ├── src/
│       │   ├── monitor/        # DEX monitoring
│       │   ├── executor/       # Trade execution
│       │   └── strategy/       # ML optimization
│       └── config/
│           └── bot.config.json
│
├── packages/
│   ├── strategy-sdk/           # Strategy SDK
│   ├── core/                   # Core utilities
│   ├── sdk/                    # Sui SDK wrapper
│   └── ui/                     # UI components
│
├── scripts/                    # Deployment & testing
├── Taskfile.yml               # Task automation
└── ROADMAP.md                 # Development roadmap

Development

Available Commands

# Development
task dev              # Start all services
task dev:web          # Start web app only
task dev:api          # Start API only
task dev:bot          # Start arbitrage bot

# Move/Sui
task move:build       # Build Move contracts
task move:test        # Test Move contracts
task sui:publish      # Publish to active network

# Flash Loans
task flash:create-pool     # Create flash loan pool
task flash:test-borrow     # Test flash borrow/repay

# Arbitrage Bot
task bot:start        # Start bot (production)
task bot:dev          # Start bot (development)
task bot:simulate     # Run simulation mode

# Testing
task test             # Run all tests
task test:move        # Test Move contracts only
task test:e2e         # Run E2E tests

# Database
task db:setup         # Set up database
task db:migrate       # Run migrations

# Monitoring
task heimdahl:monitor # Monitor events via Heimdahl

# Utilities
task clean            # Clean build artifacts
task lint             # Lint code
task format           # Format code

Usage Examples

Flash Loans

// Open a leveraged position
public entry fun open_leveraged_position(
    registry: &mut PositionRegistry,
    flash_pool: &mut FlashPool<USDC>,
    user_deposit: Coin<USDC>,
    leverage: u8, // 30 = 3x leverage
    ctx: &mut TxContext
) {
    let position = leveraged_farm::open_position(
        registry,
        flash_pool,
        user_deposit,
        leverage,
        ctx
    );
    transfer::transfer(position, tx_context::sender(ctx));
}

Arbitrage Bot

import { DexMonitor } from './monitor/dex-monitor';

const monitor = new DexMonitor(rpcUrl);
await monitor.start();

// Bot automatically detects and executes arbitrage opportunities

SDK Usage

import { FlashLoanClient } from '@hatch/strategy-sdk';

const client = new FlashLoanClient(suiClient);

// Build flash loan transaction
const tx = await client.buildFlashBorrowTx({
  poolId: 'flash-pool-id',
  amount: 1000_000000n, // 1000 USDC
  userAddress: '0x...'
});

await client.executeTransaction(tx);

Integration with Carapace

Hatch builds on top of Carapace's core infrastructure:

// Use TortoiseSwap liquidity for flash loans
import { CarapaceClient } from '@carapace/sdk';

const carapace = new CarapaceClient(suiClient);
const pool = await carapace.getPool('SUI/USDC');

// Flash borrow from Carapace pool
const { coin, receipt } = await flashPool.flashBorrow(pool, amount);

// ... use borrowed funds ...

// Repay flash loan
await flashPool.flashRepay(pool, repayment, receipt);

Architecture

Flash Loan Flow

1. User calls flash_borrow() → Receives Coin + FlashLoan receipt (hot potato)
2. User executes strategy with borrowed funds
3. User calls flash_repay() → Returns funds + fee, consumes receipt
4. Move compiler ensures receipt MUST be consumed in same transaction

Arbitrage Bot Flow

1. Monitor DEX swap events (Heimdahl WebSocket)
2. Detect price discrepancies across DEXs
3. Calculate profitability (profit > gas + slippage)
4. Execute arbitrage via flash loan + multi-hop swap
5. Profit extracted to bot wallet

Leveraged Farming Flow

1. User deposits X with 3x leverage
2. Flash borrow 2X from flash pool
3. Deposit all 3X to yield vault
4. Borrow 2X against vault shares
5. Repay flash loan with borrowed funds
6. User keeps leveraged position in vault

Technology Stack

Layer	Technology
Runtime	Bun >= 1.1.0
Smart Contracts	Sui Move
Frontend	Next.js 14 + React
Backend	Express on Bun
Bot	TypeScript + Bun
Blockchain SDK	@mysten/sui.js
Monitoring	Heimdahl.xyz
Database	PostgreSQL + Redis
AI/ML	Nautilus TEE + Walrus
Testing	Bun Test + Playwright

Roadmap

See ROADMAP.md for the complete development roadmap.

Current Status: Phase 1 (Week 1 Complete)

• ✅ Flash loan module with hot potato pattern
• ✅ Leveraged farming strategy
• ✅ Arbitrage bot infrastructure
• ✅ DEX monitoring system
• 🚧 Carapace integration (Week 2)
• 🚧 Real-time arbitrage detection (Weeks 3-5)

Testing

# Test Move contracts
task move:test

# Test with coverage
task move:coverage

# Run specific test
task move:test:specific -- --filter flash_pool_tests

# Run bot tests
bun test apps/bot

# Run integration tests
task integration:all

Security

This project handles financial operations. Security is our top priority:

• ✅ Hot potato pattern prevents flash loan non-repayment
• ✅ Health factor monitoring for leveraged positions
• ✅ Comprehensive test coverage
• ✅ Formal verification (Move Prover)
• 🚧 External security audit (planned)
• 🚧 Bug bounty program (planned)

Report vulnerabilities to: security@tortoiseos.dev

📚 Documentation

📖 Full Documentation Index - Complete guide to all documentation

Quick Links

Category	Key Documents
🚀 Getting Started	ROADMAP.md - Development roadmap
📦 Deployment	Deployment Guide - Complete deployment instructions
🎯 Launch Strategies	Launch Checklist - 7-day launch plan Zero Capital Launch - Launch with external LPs
⚙️ Operations	Runbook - Day-to-day operations Monitoring - Production monitoring
💰 Financial	Financial Summary - Revenue projections LP Outreach - Marketing templates

External Resources:

• TortoiseOS Main Repo
• Carapace Core Infrastructure
• Sui Documentation

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📊 Project Status

Smart Contracts: ✅ Complete (100% test coverage)

• 2,737 lines of Move code
• 40/40 tests passing
• Zero security warnings
• Move 2024 edition compliant

Infrastructure: ✅ Production Ready

• 17 deployment scripts
• 76 Taskfile tasks
• CI/CD pipelines (GitHub + GitLab)
• Real-time monitoring
• Rollback procedures

Documentation: ✅ Comprehensive

• 1,675+ lines of production docs
• Step-by-step guides
• Operations runbooks
• Troubleshooting guides

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🤝 Contributing

We welcome contributions! Please:

1. Check existing issues
2. Create feature branch
3. Add tests for new features
4. Ensure all tests pass: task test
5. Submit pull request

Development Workflow:

# Fork and clone
git clone https://github.com/YourUsername/hatch.git

# Install dependencies
bun install

# Build and test
task move:build
task test

# Make changes and test
# Submit PR

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📄 License

MIT License - see LICENSE file for details

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📞 Support

• GitHub Issues: https://github.com/TortoiseOS/hatch/issues
• Quick Start: task quick-start
• Documentation: See docs/ directory

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🎯 TL;DR

Deploy to testnet in 5 commands:

task quick-start          # Check prerequisites
task config:generate testnet
task config:validate
task setup:testnet        # Deploy everything
task monitor:pools        # Monitor in real-time

Read: LAUNCH_CHECKLIST.md for fast-track to production.

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Built with slow and steady precision by the TortoiseOS team 🐢🚀

Hatch - Where DeFi strategies emerge from the shell