Arbitrage opportunity: How I made 2.5% profits from my ONEUP in 2 minutes!

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Hello everyone, everyone is hyped about the Hive snapshot and airdrop but I'm gonna approach a least known opportunity on the Hive blockchain and more precisely it's related to the Diesel Pool

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What does Arbitrage means?

Cryptocurrency arbitrage is a strategy in which investors buy a cryptocurrency on one exchange and then quickly sell it on another exchange for a higher price... That’s where the classic Wall Street strategy of “arbitrage” comes in. “Capturing the arb” means taking advantage of the fact that an asset is selling for cheap in one place and at a higher price in another market.

But it's kind of different here as I'm doing arbitrage against 2 of ONEUP diesel pools:
ONEUP:SWAP.HIVE and ONEUP:SPT!

Does it always work?

NO it doesn't! in fact only when an opportunity arise.

  1. Check the 1UP price on both Pools:
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  2. Calculate the difference in 1UP prices


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I've made the trades on 2nd January 2022 when there was a 15% price difference between both pairs (sorry for not having the screenshot of the previous prices).

How it's done?

As explained in the definition, we sell high and buy low: I've done that in 4 transactions

I can't stress enough on how amazing the hive blockchain is giving us such opportunity:

  • Lighting fast transactions
  • Zero Fees

This operation can't be profitable if there were fees involved like in Binance smart chain and Etherium

So I've started with 300 ONEUP, let's see how it ends up:

1) Swap ONEUP for SWAP.HIVE


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Here I sold high for SWAP.HIVE, I'm looking for a way to get SPT in order to buy low

2/ Swap SWAP.HIVE with SPS


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3) Swap SPS for SPT


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So we finally got SPT thanks to the avaibility of multiple pools in diesel pools (buying from the market won't make it profitable since you need to wait for a good price or sell at a higher price)

4) Swap SPT for ONEUP


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Takeaway:


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Can it be done for an unlimited numbers of time? No, after 10min and doing the trades a couple of times (15 ONEUP profits), it became no longer profitable as the Oneup prices difference was shrinking and not much profits can be done.

So I hope I could highlight another way of using the diesel pools to make some profits, althought this method requires close attention to the prices and fast execution, it is not deprived from risks as you can end up losing by doing these trades so be careful and this is NOT a financial advice.

If there are any questions, I'll gladly answer them! Have a Nice day



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17 comments
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Nice man. Very kind of you to share with thousands of your closest friends to ensure you can't do it again.

!1UP30

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This gave me a good chuckle, thank you 😂

and @cantfoldaces amazing post, I've never actually thought about being the arbitrage myself, didn't think I was personally smart enough or wealthy enough but you've definitely changed my opinion on that with this post! I have been attempting to make small flips within the hive-engine market for certain assets that trade not so often, had quite a bit of luck with that! when bots are not involved and 0.000001+ my price to go top of the order books 😅 Keep up the good work!

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Thanks a lot @sketchygamerguy and @dubble!
Believe me there are hundreds of members doing the arbitrage trades and making good profits, it just requires some time and patience in addition to a healthy "play money".
I've learned a LOT from many posts, it's my time to share!

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You have received a 1UP from @sketchygamerguy!

The following @oneup-cartel family members upvoted your post:
@monster-curator, @oneup-curator, @leo-curator, @ctp-curator, @neoxag-curator, @pob-curator, @vyb-curator, @bee-curator
And look, they brought !PIZZA 🍕
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Delegate your tribe tokens to our Cartel curation accounts and earn daily rewards. Join the family on Discord.

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I've done this tons of times but never told anyone LOL

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Congratulations @cantfoldaces! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s):

You published more than 40 posts.
Your next target is to reach 50 posts.

You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

To support your work, I also upvoted your post!

Check out the last post from @hivebuzz:

Hive Power Up Month - Feedback from day 3
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Support the HiveBuzz project. Vote for our proposal!
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Really cool post about how to profit from arbitrage with ONEUP. No fees and 3 second blocktime is really great for that. In a few days we will add a ONEUP:LEO pool, that will add even further opportunities for that.

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Hive is great and ONEUP is awesome! I'm really looking forward to the ONEUP:LEO pool as i'm keeping around 1000 1UP for that pool!

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@tipu curate

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Thanks a lot for the tip :D

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;) !PGM

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Sent 0.1 PGM tokens to @zottone444, @cantfoldaces

remaining commands 9

Buy and stake 10 PGM token to send 0.1 PGM per day,
100 PGM token to send 0.1 PGM three times per day
500 to send and receive 0.1 PGM five times per day
1000 to send and receive 0.1 PGM ten times per day

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