Monday, December 26, 2022

Simple arbs on Team Kujira FIN marketplace

Here's a straightforward arb that y'all'll dig on @TeamKujira FIN marketplace that you don't need ./vern nor ./emily to execute:

Most tokens, X, have /USK and /axlUSDC order books.

Look closely. X has different prices, depending on the order book, right?

You can exploit that.

Take the $ATOM / stable order books.


You see 

  • ATOM/USK prices $ATOM at $9.104

  • ATOM/axlUSDC prices $ATOM at $9.119 <- higher!!


So here's the arb:

  1. buy ATOM at the lower price on ATOM/USK
  2. sell that ATOM on ATOM/axlUSDC

Now. Here comes the arb [wait for it!]

  1. swap the axlUSDC for USK.


You now should have more USK than what you started with.

So, what's the arb? Depends on what you want more of. If you want more $ATOM:

  1. buy ATOM with the USK on ATOM/USK order book.

And you now have more ATOM than what you bought on step 1.

But what if you wanted to arb $USK by using $ATOM? Then you'd stop at step 3.

Or, consider this:

  • Keep arbing, increasing the value of your bags until the prices equalize across order books.

You're the arbiteur. You get to call these shots.

Neat-o, huh? 😎 

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