Arbitrage through Redeem if for AquaUSD goes below 1 dollar.

Automated Arbitrage Bot Algorithm for AquaUSD below 1 dollar.

Arbitrage Conditions Definition

• Arbitrage Condition: AquaUSD must trade below 1 dollar.

• Target Purchase Price of AquaUSD: Purchase AquaUSD when 1 AquaUSD costs less than Price of USDT - (Price of USDT * Redemption fee).

Execution of Arbitrage Operation

Step 0: Calculate Required USDT in Dedust Stable-Swap Pool

• Determine how much USDT is needed in the Dedust Stable-Swap Pool to stabilize AquaUSD to $1.

• Calculate the corresponding amount of TON needed

Step 1: Purchase USDT on TON

• Using DEX: Utilize StonFi or Dedust for exchanging TON to USDT in the Volatile Pool (find the best price).

• Exchange Formula in Volatile Pool (Constant Product): x * y = k, where x and y are balances of TON and USDT, respectively.

Step 2: Exchange USDT to AquaUSD

• Using Dedust Stable-Swap Pool: Exchange USDT to AquaUSD in Dedust Stable-Swap Pool.

• Exchange Formula in Dedust Stable-Swap Pool: x^3 * y + y^3 * x = k, where x and y are balances of USDT and AquaUSD, respectively.

Redeem AquaUSD

• Select Vault for Redeem: Choose a Vault with the lowest Collateral Ratio (CR) for exchanging AquaUSD to a fixed rate of TON in Redeem Aqua.

Automatic Unstaking and Reinvestment

• Unstake and Reinvest: Automatically unstake the received TON and reinvest them back into the arbitrage pool for future operations.

Planned Features for Version 2

• LP Tokens: Anyone could participate. Users receive LP tokens in exchange for their investments in the arbitrage pool. These tokens grant access to rewards for staking TON.