A Step-by-Step Guide to Earn as a SynFutures Arbitrageur
SynFutures is keen on transforming the derivatives market by providing ordinary retail investors with the tools to trade like seasoned pros and institutional investors. Traditionally, these relatively small investors have been locked out of profit-making opportunities in the market due to lack of tools that adequately cater for their needs. We are focused on changing this by helping every trader to take advantage of the existing opportunities in the market irrespective of their portfolio size and risk appetite. One of the ways we are doing this is by enabling them to earn additional revenues by becoming arbitrageurs.
What/Who? Arbitrageurs are a healthy element of any AMM (Uniswap, Sushiswap, etc), and also every financial market (NASDAQ, CME, etc). While making risk-free profit, they help achieve equilibrium prices and keep the system stable. They are usually WHALEs (or mega whales).
Now it is your turn.
How? Here are instructions for you to become an Arbitrageur and make low-risk $$$ profit on SynFutures.
Step 1: Find the “Off” Price. In the graph below, Alice the Arbitrageur opens SynFutures dapp and connects a wallet. After looking around by selecting different Base/Quote/Maturity combinations, she finds that the MATIC-USDC-20210924 contract has a Fair Price of 1.4789, 27.41% higher than the MATIC-USDC Spot Price of 1.1607.
Step 2: Deposit a Small Margin. Alice puts down 100 USDC as margin by inputting 100 in the Enter Amount box, and clicking the Deposit button. She would like to trade 200 MATIC in size with approximately 3.0x leverage.
Step 3: Correcting the Price by Trading. Alice shorts 200 MATIC-USDC-20210924-SUSHI by inputting 200 in trade quantity and clicking the Trade button. Transaction went through successfully. Alice shorted/sold 200 MATIC-USDC-20210924-SUSHI at 1.4258, 23% higher than the Spot.
Step 4: Lock-in the Profit. There are many ways to lock-in Alice’s profit, such as covering with spot, futures of different tenors, or waiting till maturity. The easiest way is that Alice buys 200 MATIC on SushiSwap or other spot DEXes at a price very close to 1.1635, so that she sits on the risk-free profit now. For example Alice buys 200 MATIC at 1.17712 on SushiSwap.
Note that the MATIC-USDC-0924-SUSHI Fair Price now moves down (partially corrected) after Alice traded with the AMM, yet there is still some gap Bob can come in to further arbitrage.
Alice’s Profit Calculation
By following the above steps, you will be able to earn a substantial revenue by exploiting arbitrage opportunities in the crypto market. Our platform allows users to make risk-free profit from such opportunities whilst providing a valuable service to the market by helping the digital asset prices to achieve equilibrium. This can be done easily at the user’s comfort through our application that provides arbitrage tools helping them to trade like pros in the crypto market.
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