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