🤔 This week: TSLA Q3 earnings report - is now the right time to buy the EV giant?Explore TSLA Data

On-chain Analyst Identifies 8.6% APY Whale ETH/stETH Arbitrage Strategy

Published 10/10/2023, 01:35 AM
Updated 10/10/2023, 01:45 AM
©  Reuters On-chain Analyst Identifies 8.6% APY Whale ETH/stETH Arbitrage Strategy
ETH/USD
-
ETH/USD
-

  • An Ethereum whale employs a profitable arbitrage strategy involving staked ETH (stETH).
  • The strategy consists of exchanging ETH for stETH at a slight premium on a DEX, then redeeming stETH 1:1 for ETH via Lido.
  • The whale swapped 1,370 ETH for 1,370.3351 stETH on 1inch, resulting in a profit of 0.329 ETH ($540) after gas fees.

An on-chain analyst named Lookonchain recently outlined a profitable arbitrage strategy used by an Ethereum whale involving staked ETH (stETH).

According to @lookonchain, the whale exchanges ETH for stETH on a DEX at a slight premium and then redeems the stETH 1:1 for ETH via Lido. This allows the whale to pocket the spread between the ETH and STETH prices.

For example, the whale swapped 1,370 ETH for 1,370.3351 stETH on 1inch, paying 0.0061 ETH ($10) in gas fees. Redeeming the stETH for ETH netted a profit of 0.329 ETH ($540).

While not a huge return for a single trade, doing this daily with 1,370 ETH would generate 118 ETH ($194,000) …

The post On-chain Analyst Identifies 8.6% APY Whale ETH/stETH Arbitrage Strategy appeared first on Coin Edition.

Read more on Coin Edition

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.