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.
Last updated