First Mover: How a DeFi Trader Made an 89% Profit in Minutes Slinging Stablecoins


In digital-asset markets, stablecoins like tether and USDC are supposed to represent $1 of value. But their prices often fluctuate on the pubescent trading platforms of decentralized finance, or DeFi. 

So cryptocurrency traders are now apparently devising strategies to profit from slinging stablecoins in these fast-growing but often janky and thinly traded markets.

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In one Aug. 10 transaction on the Ethereum blockchain, a trader appears to have used a series of transactions in tether and USDC on the decentralized cryptocurrency exchanges Uniswap, Curve and dYdX to net a tidy $40,000 profit off a $45,000 initial investment. That works out to an 89% gain in what was likely a matter of minutes. 

The whole transaction can be seen on the website Etherscan, used to access data recorded on the Ethereum blockchain. Here’s that looks like:

Screen grab of transactions used in Aug. 10 stablecoin arbitrage trade.
Source: Etherscan

1) Trader started with roughly $45,000 in USDC tokens and borrowed another $405,000 on dYdX, for a total of $450,000 in USDC. 
2) Exploiting temporary differences between the stablecoins’ face value of $1 and quoted prices, the trader was able to use Uniswap to exchange the $450,000 of USDC for $492,000 of USDT. 
3) Trader swapped $492,000 of USDT for $492,000 of USDC on Curve. 
4) Trader paid off the $405,000 loan from dYdX and had $87,000 USDC remaining. 
5) The transactions cost about $2,000 in fees. 
6) Trader netted $40,000 profit on $45,000 of initial capital.

fm-aug-12-chart-2-diagram
Schematic of Aug. 10 stablecoin arbitrage trade using DeFi.
Source: Etherscan, CoinDesk

The transaction drew eyeballs on Tuesday from flabbergasted (and perhaps admiring) Twitter users.

At first glance, the strategy appears similar to prior exploits of these largely untested DeFi systems, such as in June when a hacker drained $500,000 from the liquidity provider Balancer

But this week’s operation appears legal, merely a 2020 version of a classic arbitrage strategy used across Wall Street and cryptocurrency markets every day.

Not bad for a few minutes of work. But just imagine how long it took for someone to figure this out. 

Tweet of the day

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Bitcoin watch

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Source: TradingView

BTC: Price: $11,462 (BPI) | 24-Hr High: $11,771 | 24-Hr Low: $11,138

Trend: Bitcoin’s bullish long-term trend looks to be on a summer holiday this week, with prices generally languishing well beneath the psychological price level of $12,000.

Yesterday’s 7.3% rejection from around $12,000 to a low of $11,137 hints at further downside risk on larger time frames backed by decreasing levels of weekly trade volume.

Bitcoin’s weekly chart reveals the possibility of a sell-off for September – historically a bearish month for the world’s largest cryptocurrency by market cap.

For example, based on data from the last three years, bitcoin has experienced losses between 20 and 36% in September after a peak in August. 

The recent rejection at overbought levels near 70.00 on the relative strength index (RSI), a tool used by traders to judge market exuberance, could lead to a deeper pullback.

Immediate support stands at the former resistance level near $10,500 with long-term support hanging at $8,650 along the 50-period moving average on the weekly chart.

A short-term push by opportunistic buyers could drive prices to retest $12,000 once more. However, failing to cement a new yearly high could result in a longer-term pullback as bitcoin heads into its historically poor month.

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Disclosure

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.





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「最高」のトレード、それを追い求めてきました。

FXを始めるあなたにとって、”最高”とは何でしょうか。

  • ボーナスが多い?
  • スプレッドが狭い?
  • キャッシュバックが良い?

それも良いでしょう。そしてこれらは、私たちにとっては当たり前の前提です。

しかし、それだけでは、何かが足りない――

ツイッター上では、実力のないトレーダーしか存在していません。

また多くの優秀なトレーダーはそもそも、日本からの情報を信用していません。

それはなぜか。

日本は、広告に支配され

発言権が強い者が、ただそれだけの理由で

もてはやされる国だからです。

最近では一極支配の広告業界に亀裂が走り始めていますが、本当の情報にアクセスできるようになるのはまだまだ先のこと。

しかし私たちは知っています。

世界には純然たる天才が存在することを。

Instiute Trader(IT)

彼は海外大手シグナルサイトでトップの実力と人気を誇るトレーダーです。

月間1000pipsを目標としており、また毎日動画を配信する精力さも持ち合わせた、素晴らしい方です。

紹介動画

Optimum Price Action(OPA)

LH-FX.comでは言わずと知れた現存する伝説のEA。おそらくリアルトレードでは間違いなく最高パフォーマンスを叩き出しています。

作者のThangはSentiment Analysisという理論書を発行し、これが一部のファンドなどからも脚光・注目を浴びています。

紹介音声

これらの特典をセットにしてご提供

ブローカーの性能が良いのは当たり前です。

そのうえで私たちが必要なのは、”たえまない資産形成”であり、私たちは誠心誠意をもって、サービスの提供に努めてまいります。

ご案内はトップページ「REALTRADE.INFO」をご覧ください。

 

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