Dear Equilibrians, if you haven’t followed us lately, we’ve got massive news: we’re launching our Closed Beta phase, where you can be one of Equilibrium’s first users and explore our key functionalities.
Plus, a $40,000 reward in EQ is lined up for participants!
To prepare for the launch in September, we’ll take you through a series of use cases to help you grow your virtual portfolio and be prepared for when Equilibrium is fully live.
This is the fifth use case in the series, and we’ll discuss how to earn arbitrage from Equilibrium’s DEX deposit.
Key things to be aware of:
- Every participant will be given a portfolio worth $25,000 worth of virtual assets
- Portfolio will contain 4 tokens: ETH, DOT, USDT, USDC
- The crypto assets supported in this Closed Beta are BTC, ETH, DOT, USDT, USDC, BNB, ACA, GLMR, ASTR, INTR, XOR, FRAX, LDO, xcDOT-stDOT f-gauge tokens
- Users need to maximize their portfolios to become the most active and compete for rewards
Register here if you haven’t already applied to join Equilibrium’s full launch.
DEX Arbitrage on Equilibrium
Equilibrium is a highly leveraged cross-chain DeFi 2.0 protocol, in which users can access lending, borrowing, trading, insurance, and earning opportunities.
Margin trading is among the flagship features within Equilibrium. It features Equilibrium’s DEX, which overcomes common DEX challenges such as Front-running, trade failures, and cancellation through Substrate and Polkadot technologies.
These improvements allow Equilibrium to go beyond the limits of current Ethereum-based decentralized exchanges, and they also facilitate the arbitrage feature on Equilibrium.
Arbitrage is purchasing and selling an asset on various platforms or exchanges to profit from the price discrepancy (usually small percentages). The quantity of the underlying asset you buy should match when entering an arbitrage trade.
The price difference is the only variable recorded as the trader’s net profit.
The pay-off should cover the expenses related to executing the trades (i.e., transaction costs). If so, the trader’s decision to start the transaction in the first place would be absurd.
How Much Will this Help with The Portfolio Growth?
Let’s do some napkin math. Let’s say the price of Bitcoin on the Equilibrium DEX is 21,000 USD, and the price from Oracle (external markets) is 20,000 USD.
You can deposit BTC into Equilibrium, sell it for 21,000 EQD, exchange this EQD for 21,000 USDT (provided there is a liquid market and/or a curve pools setup between EQD and USDT), and then buy BTC on outside venues at 20,000 USD, netting you 1000 USDT in arbitrage profit less any transaction fees involved.
How to Get Started
Step 1: Access the Equilibrium website and select Get Started on the landing page. Alternatively, start your Equilibrium experience by connecting to a supported wallet.
Step 2: Authorize the wallet connection.
Step 3: Start trading with EQ allocation, xDOT contribution, or PLO phase 1.
Conclusion
Earning through the closed beta functionalities provides cryptocurrency traders and enthusiasts with an opportune moment to understand Equilibrium’s functionalities before its release to the market. With restricted participation and an eager community, participation slots are dwindling fast! Hurry to secure your opportunity and experience DEX arbitrage in Equilibrium.
Register here if you haven’t already applied to join Equilibrium’s full launch.
About Equilibrium
Equilibrium is a one-stop DeFi platform on Polkadot that allows for high leverage in trading and borrowing digital assets. It combines a full-fledged money market with an orderbook-based DEX. EQ is the native utility token that is used for communal governance of Equilibrium. xDOT is a liquid and tradeable wrapped DOT that unlocks liquidity of DOT locked in parachain auctions and delivers multiple crowdloan bonuses on Polkadot.
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How to Maximize Portfolio in Closed Beta. Case 5: DEX Arbitrage was originally published in Equilibrium on Medium, where people are continuing the conversation by highlighting and responding to this story.
