Thread by @0xNeiro

[Arbitrage - How I made 50K to 500K in 1 day ]

1/ 3 months ago, I made some good cash with #UST's fall in a single day. 💦

Litterally printing cash out of the OSMO/UST pool. If you aren't familiar with arbitrage opportunities, here an intro to three arbitrage strategies. 🧵

2/ As a cosmos addict and a developer, I have algorithms that monitore DEX hubs in the cosmos arbitrage for arbitrage oppotunities. This one was huge due to CEX suspending transactions and opening the gate few times each hours. Thus, arbitrors were not able to play it.

3/ The trick here was to spam Binance to have the withdraw at the right moment. Another smart move was to do a leverage loan with BTC/ETH, so that you have the possiblity to make more profits since at the end the arbitrage was around 5-10% without selling your cryptos.

4/ Here the loop I followed: Buy UST on Binance, Transfer to Osmosis, swap it against ATOM, withdraw ATOM to Binance, swap ATOM for UST. Loop again. You were able to make beetween 10% to 50% profits by loop which was honest. I let you imagine doing this 10 times.

5/ About common strategies, there is three types of arbitrage, transferal arbitrage which is pretty common and simple to understand, you buy on a CEX 1 BTC/USD, you sell it on CEX2, instant profits but risk of change price due to others arbitrors.

6/ Tringular Arbitrage, is the most sophisticated one, it is based on operationnal research algorithms, instead of you using two routes, you may use 7-8 routes to make some potential profit. However, More routes mean riskier arbitrage opportunity due to price changes.

7/ Exposed Arbitrage: This strategy is for whales. Accumulating at exchange's gaps. Imagine you hold BTC in CEX A and in CEX B, instead of doing some transfer beetween exchange, you sell BTC in CEX A where the price is higher and buy some in CEX B.

8/ This strategy can give a really decent APR in volatile environnement: Arbitrors and market-makers make a good part of their pay-check on it. Making money is possible in a bear-market, you need to find your corner and stick to it.

- Nothing is static, everything is evolving. -

9/ For any info, I am building arbitrage bots with Machine learning and Operationnal Research. If you need any help regarding some strategies, feel free to reach me. I am also offering some mentoring.

I will make a full medium for market-making and arbitrage soon.

Cheers guys.