Oracle of Pairs

What it does

For pairs that should track each other tightly — wstETH/stETH, cbETH/WETH, USDC/USDbC — the Oracle watches for divergence beyond a threshold and trades the convergence with both legs simultaneously.

Because the trade is opened delta-neutral, the risk profile is primarily basis risk on the assumed correlation, not directional.

Strategy

1. Every sweepEverySec seconds, read the spot price of every monitored pair.
2. Compute the live spread. If > minEdgeBps after gas, open both legs in a single bundled call.
3. Hold until the spread compresses below exitEdgeBps, then unwind both legs in a single call.
4. If the pair correlation breaks beyond haltCorrelationBreakBps, halt and unwind defensively.

Parameters

Venues

Routing aggregators only — no direct AMM legs to avoid sandwich risk:

• 1inch
• CoW Protocol (preferred — protected against MEV)
• 0x

Risks

Example intent

typescriptimport { defineIntent, BASE } from "@magicscodes/sdk";
import { oracleOfPairs } from "@magicscodes/spells";

export const wstethArbIntent = defineIntent({
  goal: "Capture mispricings on wstETH variants",
  budget: { usd: 25_000n },
  bounds: {
    chains: [BASE],
    pairs: [["wstETH", "stETH"], ["cbETH", "WETH"]],
    minEdgeBps: 12,
    maxLegSize: 5000n,
    haltCorrelationBreakBps: 200,
  },
  cadence: {
    sweepEverySec: 8,
    notifyOn: ["enter", "exit", "halt"],
  },
  agentHint: oracleOfPairs,
  manaPolicy: "metered",       // mana-charged per plan call
});