How to Earn on Arbitrage

In trading, arbitrage refers to buying an asset at one place and selling it for a better price somewhere else. The goal is to accumulate the asset. Before we move on, it's important to understand the difference between arbitrage and trading. The former is not about buying low, waiting, and selling high. It's about making a profit by closing two deals at the same time (buy & sell).

To fully grasp just how advantageous Minter environment is in terms of trading and arbitrage, let's define key features that allow one to trade even in insignificant amounts:

• Confirmation time of up to 5 seconds allows one not only to save their precious time, but also to quickly react to trading situations
• Block finality: no need to wait until several blocks are mined
• Low fees, namely $0.03 + 0.2% per swap, let one take part in profitable transactions even if their balance is insignificant. Soon, Minter will roll out an opportunity to apply a so-called swap fee multiplier aiming to help traders prioritize the processing of their transactions by the blockchain. The bigger the multiplier, the higher the chance that the transaction will be processed first in the block and the trader will achieve the result they've expected
• Fees payable in any liquid token: no need to hold a specific token just to pay the fee. If there's only USDTE on your balance, for example, the fee will be paid in USDTE as well
• Pool routes: build any swap route using liquidity pools within a single transaction (if the user needs to swap two tokens that don't have a common pool for direct exchange, the conversion can take place through a chain of pools of up to 5 tokens).
• Cross-chain transfers via Minter Hub

Learn more about arbitrage with stablecoins.

This material serves educational purposes only. The information contained herewithin does not constitute an investment, financial, legal, or tax advice, and it is not an offer or solicitation to purchase or sell any financial instrument.