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
- 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.