Arbitrage. Can I make it?

sodomlv in #hive-167922 • 3 years ago

Hello all,

I read the article "How To Arbitrage and Accumulate More Leo Tokens?" by @badbitch and I would like to make a test if I can make it or not.

I pretend to have 55 USDT as the initial investment on Binance.
At the time I write this post, BNB price is 390USDT and HIVE price is 0.94USDT

Following the instruction, there are several steps as below to complete 1 round

Buy BNB with USDT in Binance
Transfer BNB to BSC wallet
Convert BNB to BLEO in Pancake
Convert BLEO to LEO
Convert LEO to SWAP.HIVE
Convert SWAP.HIVE to HIVE
Send HIVE to Binance
Convert HIVE to USDT

0. Check the price

With the above price, 55 USDT is equal to 58.51 HIVE or 0.141BNB
Checking the swap on Pancake and Tribaldex,
58.51 HIVE = 295.747 LEO

0.141BNB = 299.861 BLEO

If I follow correctly all the steps, I should have a profit of 4LEO in my wallet

1. Buy 0.141 BNB with 55 USDT in Binance

With BNB price is 390USDT, I can get 0.141BNB.
However, Binance fee is 0.1%, so I will get 0.14088BNB

2. Transfer 0.14088 BNB from Binance to BSC wallet

There is no transaction fee to withdraw BNB from Binance to BSC wallet. So I will get 0.14088 BNB BSC wallet

3. Convert 0.14088BNB to 299.861BLEO

I take the average transaction fee is ~ 0.0006BNB or 24 cents

4. Transfer 299.861BLEO to 299.861LEO in HIVE wallet

I use https://wleo.io/bsc to transfer BLEO in my BSC wallet to Hive network.
The average transaction fee is ~ 8 cents

5. Convert 299.861 LEO to 58.87 SWAP.HIVE

6. Convert 58.87 SWAP.HIVE to 58.72 HIVE

The fee to swap from SWAP.HIVE to HIVE is 0.25%, so I only can get 58.72 HIVE

7.Send HIVE to Binance

There is no fee for this transaction. I can get 58.72 HIVE in Binance.

8.Convert HIVE to USDT

I can sell 58.72 HIVE for 55.2 USDT, with the fee 0.1%, then I can get 55.14 USDT in the wallet.

9. Conclusion

Finally, I can get 55.14 USDT. But this amount is excluded the transaction fee in step 3 and 4.
If I include these fee, the final amount should be 54.82 USDT
This means I will lose 0.18USDT for the whole circle.

This is the excel table to show all the number in a glance.

@badbitch , please advise if I did anything wrong here.
And I don't have any intension to against you. I just want to understand deeply the arbitrage to get the profit from it.

Thanks!!!

Posted Using LeoFinance ^Beta

#leofinance #proofofbrain #vyb #neoxian #earning #cent #cryptocurrencies #broadhive

3 years ago in #hive-167922 by sodomlv

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badbitch 3 years ago

You didn't get anything wrong, you got your 4 Leo profit accordingly to your calculations, but if you want to cash that out, it isn't worth so much, but the goal was to get more Leo while spending less, wasn't it?

Now, consider that the markets don't wait for you, while the prices on DEXs take a little longer to correct, the prices on CEXs can change really fast, so the best way to go around it is to watch the prices and be sure the difference is wide enough to allow you go two to three rounds...

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sodomlv 3 years ago

Thank you!

You didn't get anything wrong, you got your 4 Leo profit accordingly to your calculations, but if you want to cash that out, it isn't worth so much, but the goal was to get more Leo while spending less, wasn't it?

I just think arbitrage is realized as the profit when you get back the initial budget, or "cash out".
The 4 LEO profit here is not arbitrage, it's just to check and compare the LEO price in different platforms and choose the cheapest one.

Posted Using LeoFinance ^Beta

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hivebuzz 3 years ago

Congratulations @sodomlv! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s):

You received more than 1750 upvotes.
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hivebuzz 3 years ago

Congratulations @sodomlv!
You raised your level and are now a Minnow!

Check out the last post from @hivebuzz:

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hivebuzz 3 years ago

Congratulations @sodomlv! You received a personal badge!

You powered-up at least 10 HIVE on Hive Power Up Day!
Wait until the end of Power Up Day to find out the size of your Power-Bee.
May the Hive Power be with you!

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davidke20 3 years ago

You can't out trade a robot nowadays as there's script that will constantly monitor multiple feed from different exchanges on the price difference. The moment the bot spotted an opportunity, it's automatically traded buy sell instantly, that will nullify the differences other than the fee itself. However, there are still chances of hold the value in one exchange and wait for price fluctuation. But pure arbitrage trading, it's already down to milliseconds that human finger virtually can't do unless you have both your left and right eye starring at a different exchange, hit the trigger on two different device to execute the trade.

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sodomlv 3 years ago

Thanks for your information. It's clear to me :)

Posted Using LeoFinance ^Beta

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hivebuzz 3 years ago

Congratulations @sodomlv! You received a personal badge!

You powered-up at least 500 HP on Hive Power Up Day! This entitles you to a level 4 badge
Participate in the next Power Up Day and try to power-up more HIVE to get a bigger Power-Bee.
May the Hive Power be with you!

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Check out the last post from @hivebuzz:

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