So after the first two episodes of defichain explained I

Question

So after the first two episodes of defichain explained I

feel like I have a good understanding of stock token creation and liquidity mining. However, I still have no idea how the arbitrage works. Is it explained anywhere or do I have to wait for episode 3?

#blockchain #cryptocurrency #defichain #english

0

09.10.2021

8 ответов

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Daniel Zirkel

Arbitrage is really tricky here. I still have not finished this section and I am in discussions with U-Zyn. Basically you have to leave the system in the same way you entered it. If you want to do arbitrage trading you have to do it over time. I will explain it in future, which ideas exists. Maybe there will be additional ideas from the community then.

0

09.10.2021

thereforetl

Daniel Zirkel
Arbitrage is really tricky here. I still have not ...

The arbitrage opportunity that I see would be carrying out liquidations. By winning a liquidation auction to purchase collateral below the current DEX price, I could then immediately sell that collateral on the DEX for an arbitrage profit. Another possible arbitrage opportunity could be if a CEX like Kucoin were to list synthetic DAT stocks like dTSLA. This would create a separate market to arbitrage price differences for synthetic stocks.

0

10.10.2021

Plan ₿

thereforetl
The arbitrage opportunity that I see would be carr...

🔇🔇🔇

0

10.10.2021

Crypto Guru

thereforetl
The arbitrage opportunity that I see would be carr...

You can not sell the collateral immediately. You buy a loan, first you have to pay back the loan, than you can sell what is left. (And this is not arbitrage.) The synthetic assets will not be available on CEX, so this will not be possible. (Therefore options and futures will come next).

0

10.10.2021

thereforetl

Crypto Guru
You can not sell the collateral immediately. You b...

Functionally I can get a lower price than the DEX(secondary market) by obtaining(purchasing by winning the auction) the collateral from the primary market(loan market) in the process of closing the loan+interest. After I get the collateral I can sell it on DEX(secondary market) for a risk free profit. This wouldn’t be textbook arbitrage, but I think it is close enough to label it as such. Sad to learn that tokenized stocks will not be offered on any CEX. I wonder why this would be

0

10.10.2021

Crypto Guru

thereforetl
Functionally I can get a lower price than the DEX(...

We should not invent new meanings for well defined words. I think in the beginning there will be quite insane bids as people will not take the many commissions you have to pay into account.

0

10.10.2021

thereforetl

Crypto Guru
We should not invent new meanings for well defined...

Risk free profit between two markets is arbitrage?

0

10.10.2021

Oliver · Accepted Answer

Oliver

The real price of the assets comes from a pricing oracle.

0

09.10.2021

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