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poly_merger/merge.js

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+/**
+ * Poly-Merger: Position Merging Utility for Polymarket
+ * 
+ * This script handles merging of YES and NO positions in Polymarket prediction markets
+ * to recover collateral. It works with both regular and negative risk markets.
+ * 
+ * The merger supports Gnosis Safe wallets through the safe-helpers.js utility.
+ * 
+ * Usage:
+ *   node merge.js [amountToMerge] [conditionId] [isNegRiskMarket]
+ * 
+ * Example:
+ *   node merge.js 1000000 12345 true
+ */
+
+const { ethers } = require('ethers');
+const { resolve } = require('path');
+const { signAndExecuteSafeTransaction } = require('./safe-helpers');
+const { safeAbi } = require('./safeAbi');
+
+// Load environment variables
+require('dotenv').config()
+
+// Connect to Polygon network
+const provider = new ethers.providers.JsonRpcProvider("https://polygon.llamarpc.com");
+const privateKey = process.env.PK;
+const wallet = new ethers.Wallet(privateKey, provider);
+
+// Polymarket contract addresses
+const addresses = {
+  // Adapter contract for negative risk markets
+  neg_risk_adapter: '0xd91E80cF2E7be2e162c6513ceD06f1dD0dA35296',
+  // USDC token contract on Polygon
+  collateral: '0x2791Bca1f2de4661ED88A30C99A7a9449Aa84174',
+  // Main conditional tokens contract for prediction markets
+  conditional_tokens: '0x4D97DCd97eC945f40cF65F87097ACe5EA0476045'
+};
+
+// Minimal ABIs for the contracts we interact with
+const negRiskAdapterAbi = [
+  "function mergePositions(bytes32 conditionId, uint256 amount)"
+];
+
+const conditionalTokensAbi = [
+  "function mergePositions(address collateralToken, bytes32 parentCollectionId, bytes32 conditionId, uint256[] partition, uint256 amount)"
+];
+
+/**
+ * Merges YES and NO positions in a Polymarket prediction market to recover USDC collateral.
+ * 
+ * This function handles both regular and negative risk markets via different contract calls.
+ * It uses the Gnosis Safe wallet infrastructure for secure transaction execution.
+ * 
+ * @param {string|number} amountToMerge - Raw amount of tokens to merge (typically expressed in raw units, e.g., 1000000 = 1 USDC)
+ * @param {string|number} conditionId - The market's condition ID
+ * @param {boolean} isNegRiskMarket - Whether this is a negative risk market (uses different contract)
+ * @returns {string} The transaction hash of the merge operation
+ */
+async function mergePositions(amountToMerge, conditionId, isNegRiskMarket) {
+    // Log parameters for debugging
+    console.log(amountToMerge, conditionId, isNegRiskMarket);
+    
+    // Prepare transaction parameters
+    const nonce = await provider.getTransactionCount(wallet.address);
+    const gasPrice = await provider.getGasPrice();
+    const gasLimit = 10000000;  // Set high gas limit to ensure transaction completes
+
+    let tx;
+    // Different contract calls for different market types
+    if (isNegRiskMarket) {
+      // For negative risk markets, use the adapter contract
+      const negRiskAdapter = new ethers.Contract(addresses.neg_risk_adapter, negRiskAdapterAbi, wallet);
+      tx = await negRiskAdapter.populateTransaction.mergePositions(conditionId, amountToMerge);
+    } else {
+      // For regular markets, use the conditional tokens contract directly
+      const conditionalTokens = new ethers.Contract(addresses.conditional_tokens, conditionalTokensAbi, wallet);
+      tx = await conditionalTokens.populateTransaction.mergePositions(
+        addresses.collateral,        // USDC contract
+        ethers.constants.HashZero,   // Parent collection ID (0 for top-level markets)
+        conditionId,                 // Market ID
+        [1, 2],                      // Partition (indexes of outcomes to merge)
+        amountToMerge                // Amount to merge
+      );
+    }
+
+    // Prepare full transaction object
+    const transaction = {
+      ...tx,
+      chainId: 137,       // Polygon chain ID
+      gasPrice: gasPrice,
+      gasLimit: gasLimit,
+      nonce: nonce
+    };
+
+    // Get the Safe address from environment variables
+    const safeAddress = process.env.BROWSER_ADDRESS;
+    const safe = new ethers.Contract(safeAddress, safeAbi, wallet);
+
+    // Execute the transaction through the Safe
+    console.log("Signing Transaction")
+    const txResponse = await signAndExecuteSafeTransaction(
+      wallet, 
+      safe, 
+      transaction.to, 
+      transaction.data, 
+      { 
+        gasPrice: transaction.gasPrice, 
+        gasLimit: transaction.gasLimit 
+      }
+    );
+    
+    console.log("Sent transaction. Waiting for response")
+    const txReceipt = await txResponse.wait();
+    
+    console.log("merge positions " + txReceipt.transactionHash);
+    return txReceipt.transactionHash;
+}
+
+// Parse command line arguments
+const args = process.argv.slice(2);
+
+// Amount of tokens to merge (in raw units, e.g., 1000000 = 1 USDC)
+const amountToMerge = args[0]; 
+
+// The market's condition ID
+const conditionId = args[1];
+
+// Whether this is a negative risk market (true/false)
+const isNegRiskMarket = args[2] === 'true';
+
+// Execute the merge operation and handle any errors
+mergePositions(amountToMerge, conditionId, isNegRiskMarket)
+  .catch(error => {
+    console.error("Error merging positions:", error);
+    process.exit(1);
+  });