Ethereum: Asynchronous Market Prices When Placing an Order via Node.js and ccxt
As a cryptocurrency trader, it is not uncommon to encounter issues with out-of-sync market prices. This can lead to fake trades and significant losses if left unchecked. In this article, we investigate the desynchronization issue on the Ethereum market using a websocket server to receive price updates from the exchange.
Problem: Desynchronization
When an order is placed on a cryptocurrency exchange such as Binance or Huobi using the ccxt Node.js library, the createMarketOrder function sends the order details (currency, amount) to the exchange’s API. The exchange then forwards this information to the websocket server that we have configured to receive price updates.
However, for various reasons, such as network latency, congestion, or even technical issues with the exchange’s infrastructure, the price received may not be accurate or up-to-date. This can cause our “createMarketOrder” function to place an order at one price that is later updated to a different price on the exchange’s blockchain.
Simple Example
Let’s create a simple example using the ccxt library and Node.js to demonstrate this issue.
const ccxt = require('ccxt').ethersocket;
// Create a websocket connection to the Ethereum exchange
const websocket = new ccxt.ethersocket({
url: "wss://api.binance.com/1/exchange/binance",
});
// Configure the websocket server to receive price updates
const server = (req, res) => {
// Listen for incoming WebSocket connections
websocket.on('connect', () => {
console.log('WebSocket connection established');
// Receive a message from the client with order information
websocket.on('message', (message) => {
const { currency, amount } = JSON.parse(message);
// Create an order using the ccxt library
buyMarketOrder: async(currency, amount) => {
console.log(Order placed ${amount} ${currency});
// Simulate a delay to introduce desynchronization
await new promise((resolve) => setTimeout(resolve, 1000));
// Update the order information with the latest price
constant price = websocket.price(currency);
quantity = price * quantity; // Update the order amount based on the new price
// Create an order and place it on the exchange
console.log(Order placed ${amount} ${currency});
}
});
});
};
// Start the websocket server
server.listen(3000, () => {
console.log('WebSocket server listening on port 3000');
});
Problem
In this example, we have created a simple function “buyMarketOrder” that simulates a 1 second delay between receiving price updates and placing an order. During this time, the client may receive outdated prices from the exchange.
When we place an order with a simulated amount using the updated price, we are essentially creating a new order with a different amount than the one sent to us in the original request.
Conclusion
To solve the synchronization problem, you need to ensure that your websocket server is receiving accurate and up-to-date prices from the exchange. Here are some recommendations:
- Use a reliable WebSocket library
: Make sure that your websockets server uses a reliable and well-maintained library like ccxt instead of a less secure alternative.
- Enable persistent connections: Establish long-lasting persistent connections to the hub’s network socket endpoint to minimize the impact of synchronization.
- Use real-time data feeds: Consider using real-time data feeds from the exchange or implementing an on-chain price update mechanism to reduce reliance on external APIs.