# Arbitrage through Redeem if for AquaUSD goes 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.


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