We decided to do some testing on Kovan to showcase arbitrage between Synthereum and Uniswap thanks to Sythereum’s unique feature: synthetic assets are redeemable by their exact value in USDC. To do so, we listed our synthetic EUR, CHF, GBP, XAU (Gold), XAG (Silver), XTI (Oil) and SPX (S&P500) against USDC on Unswap Kovan, and sked our community to provide liquidity and to try to push the prices on Uniswap as close as possible to the real prices of said assets through arbitrage. So far, the community succeeded to maintain a strong peg on all the assets.
This experiment also highlights how much profit an arbitrageur can make, as well as how much fees could be collected by the liquidity providers on Uniswap and Synthereum, and of course by the DAO.
- Switch your Metamask to Kovan Test Network
- You can get some ETH and USDC directly from https://kovan.jarvis.exchange/ or if you want more USDC use Aave faucet https://testnet.aave.com/
- Follow the Uniswap price of Gold, Oil, SP500 or EUR
- If Uniswap price > Jarvis price = mint on Jarvis Exchange and sell it on Uniswap, and vice versa
Here is a handy sheet that will help you to calculate how much you need to buy/sell: http://bit.ly/drive_Jarvis_arb
What is Synthereum? Is it a feature inside the Jarvis exchange? I am testing now on Kovan while reading your articles, but getting confused a bit.
Also, I can see Synthereum inside the https://kovan.jarvis.exchange/ interafece.
Synthereum is the synthetic protocol, while Jarvis Exchange is the UI to interact with the said protocol.
The protocol itself will be decentralized and could be accessed by anyone, while Jarvis Exchange (the UI), is centralized and will not be accessible for some of the countries, for example, the United States.
I was not 100% sure, but I thought it is the name of the protocol. However, I think it is confusing. Meaning, the interface needs to have the name of the Jarvis app.
On a side note: the app is very good! I want to try it on the Mainnet.
We plan the mainnet launch in Q4 of 2020.
As for the protocol, we have two protocols in work:
- Synthereum for synthetic assets (which you can access through Jarvis Exchange)
- Margineum for margin trading using single crypto deposit (you access it through Jarvis Trade, and can open leveraged positions on Forex, Idexes, CFDs, etc.)
P.S. Margineum is already on the mainnet, but still in beta, for now.
The link above doesn't work for me. Here is the error I have: https://monosnap.com/file/WanalUVMpCgVlPLkHrfLpD3brNukSF I have the latest Firefox.
Please have a look at my screenshot. You will see this link: https://kovan.jarvis.exchange/
- How real is to do the same thing on Main net and actually make a profit through arbitrage?
- Do we need some whales first to push it and get a nice peg?
- As real as it is on the mainnet, until the bots join, it's hard to compete with those.
- Not exactly, in the beginning, it will be relative to the liquidity provided on Uniswap, it will not be millions from the get-go, with lower liquidity, you do not need whales to push the peg. Later whales will be needed, and we have several big key investors that will provide liquidity.