Content
@
https://ethereum.org
0 reply
0 recast
0 reaction
Trashpirate
@trashpirate.eth
Why is it that most people think that arbitrage is a bad thing? Arbitrage takes advantage of inefficiencies in the markets and provides us with an equal price across multiple liquidity pools. Our project EARN has multiple liquidity pools on different chains. We purposely designed it that way as it allows to take advantage of the different price movements of tokens the pools are setup with. For example on @ethereum, we have the $EARN token paired to ETH, while on the @0xtobby $EARN is paired with BNB. ETH and BNB move differently in price, creating arbitrage opportunities between the pools. Arbitrage ensures equal prize while stabilizing the effect of the underlying assets (BNB, ETH, etc.). Pairing a token to different assets, and arbitrage thereof, not only mitigates risks of negative price movements while creating more exposure to potential positive price movements. If you know of an example where arbitrage is a net negative for an asset, please let me know in the comments 👇
0 reply
0 recast
0 reaction
