How to make money on arbitration?

Due to the fact that the price of polar tokens in the Liquid Pool is fixed, and changes only after the end of the event, we can notice the presence of constant arbitrage between the Liquid Pool and the Trade Pool.

By the time the event ends, when the price of polar tokens changes in the Liquid Pool, the price of polar tokens in the Trade Pool is likely to be different (closer to the values ​​of the previous event). As soon as the Liquid Pool opens, the prices in all pools should equal the price in the Liquid Pool.

In order to make money on arbitrage, you need to track the price difference between Liquid Pool and Trade Pool. You may face a situation in which, for example, the price of the WHITE token in the Liquid Pool will be $ 0.55, and in the Trade Pool its price will be $ 0.57. In this case, you have the opportunity to buy cheaper in the Liquid Pool and sell more expensive in the Trade Pool, until the price in the Trade Pool drops to the values ​​of the Liquid Pool and arbitrage becomes unprofitable.

Arbitrage opportunities appear every time the price in the Liquid Pool changes. This happens every time another event completes. (As part of a trading competition, while there are no arbitrage robots on the testnet, this can be a significant source of TUSDC earnings for you.)

Track the price difference between the Liquid Pool and the Trade Pool, equalize prices and make money on this after each event ends.

  1. How do polar tokens work?

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Polars.io — The new DeFi concept for the Prediction Market.

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