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Kalshi Eth Merge Momentum Trader

by @diagnostikon

Trades ETH price markets on Kalshi using the post-merge deflation thesis. ETH burns ~0.5% of supply annually via EIP-1559, creating structural upward pressur...

TERMINAL
clawhub install kalshi-eth-merge-momentum-trader

πŸ“– About This Skill


name: kalshi-eth-merge-momentum-trader description: Trades ETH price markets on Kalshi using the post-merge deflation thesis. ETH burns ~0.5% of supply annually via EIP-1559, creating structural upward pressure. Requires SIMMER_API_KEY and simmer-sdk. metadata: author: Diagnostikon owner: Diagnostikon version: "1.0.0" displayName: Kalshi ETH Merge Momentum Trader difficulty: advanced homepage: "https://simmer.markets/skills" repository: "https://github.com/SpartanLabsXyz/simmer-sdk" requires_env: "SIMMER_API_KEY" requires_pip: "simmer-sdk" default_mode: "paper" live_flag: "--live"

Kalshi ETH Merge Momentum Trader

> This is a template. > The default signal uses a static 0.5% annual burn rate -- remix it with live ultrasound.money data, dynamic burn rate tracking, or EIP-1559 base fee analysis. > The skill handles all the plumbing (market discovery, trade execution, safeguards). Your agent provides the alpha.

Strategy Overview

Post-merge Ethereum burns approximately 0.5% of its total supply annually through the EIP-1559 fee burn mechanism. When gas usage exceeds issuance to validators, ETH becomes net deflationary. This skill computes a deflation-adjusted fair value and trades when markets underprice this structural supply reduction.

Key advantages:

  • Structural thesis -- supply reduction is mechanical, not speculative
  • Time-sensitive -- longer time horizons amplify the deflation effect
  • Verifiable -- burn rate data is on-chain and public
  • Signal Logic

    Deflation Model

    1. Compute deflation-adjusted price: adj = base * (1 + net_deflation * days/365 * 0.5) 2. Convert price target to fair probability using logistic model 3. Compare fair probability to market price 4. Trade when |fair - market| >= entry_edge

    Remix Ideas

  • Live burn rate: Track ultrasound.money for real-time ETH burn data
  • Dynamic issuance: Adjust for changing validator count
  • Gas price correlation: Higher gas = higher burn = more deflation
  • Macro overlay: Fed rate expectations affect crypto demand
  • Risk Parameters

    | Parameter | Default | Notes | |-----------|---------|-------| | Entry edge | 10% | Min model-vs-market divergence to trade | | Exit threshold | 45% | Sell when position price reaches this | | Max position size | $5.00 USDC | Per market | | Max trades per run | 3 | Rate limiting | | Annual burn rate | 0.5% | ETH supply burn rate assumption | | Base ETH price | $3500 | Current ETH price baseline |

    Installation & Setup

    clawhub install kalshi-eth-merge-momentum-trader
    

    Requires: SIMMER_API_KEY and SOLANA_PRIVATE_KEY environment variables.

    Cron Schedule

    Cron is set to null -- the skill does not run on a schedule until you configure it in the Simmer UI.

    Safety & Execution Mode

    The skill defaults to dry-run mode. Real trades only execute when --live is passed explicitly.

    | Scenario | Mode | Financial risk | |----------|------|----------------| | python trader.py | Dry run | None | | Cron / automaton | Dry run | None | | python trader.py --live | Live (Kalshi via DFlow) | Real USDC |

    Required Credentials

    | Variable | Required | Notes | |----------|----------|-------| | SIMMER_API_KEY | Yes | Trading authority. Treat as a high-value credential. | | SOLANA_PRIVATE_KEY | Yes | Base58-encoded Solana private key for live trading. |

    Tunables (Risk Parameters)

    | Variable | Default | Purpose | |----------|---------|---------| | SIMMER_ETH_MERGE_ENTRY_EDGE | 0.10 | Min divergence to trigger trade | | SIMMER_ETH_MERGE_EXIT_THRESHOLD | 0.45 | Sell position when price reaches this level | | SIMMER_ETH_MERGE_MAX_POSITION_USD | 5.00 | Max USDC per trade | | SIMMER_ETH_MERGE_MAX_TRADES_PER_RUN | 3 | Max trades per execution cycle | | SIMMER_ETH_MERGE_SLIPPAGE_MAX | 0.15 | Max slippage before skipping (15%) | | SIMMER_ETH_MERGE_MIN_LIQUIDITY | 0 | Min market liquidity USD (0 = disabled) | | SIMMER_ETH_MERGE_BURN_PCT | 0.5 | Annual ETH supply burn rate (%) | | SIMMER_ETH_MERGE_BASE_PRICE | 3500 | Current ETH price baseline ($) |

    Dependency

    simmer-sdk is published on PyPI by Simmer Markets.

  • PyPI: https://pypi.org/project/simmer-sdk/
  • GitHub: https://github.com/SpartanLabsXyz/simmer-sdk
  • Publisher: hello@simmer.markets
  • Review the source before providing live credentials if you require full auditability.