Perpetual Protocol

The strategy for <a href="https://perp.com/hottub-signup" rel="noopener noreferrer nofollow">Hot Tub</a> is based on arbitrage, a very low risk trading technique that profits from price differences for a particular asset across multiple trading venues. An example of arbitrage is buying ETH on one exchange at a certain price, then selling the same ETH using another exchange quoting a higher price. Essentially, it’s “buy low, sell high” but it’s done instantly.Hot Tub accepts deposits in both WETH and USDC with two different vaults. Each vault pools the deposits together to capitalize on arbitrage opportunities. Since this strategy buys ETH at a low price, then immediately sells ETH at a higher price, profits can be achieved with minimal risk by capitalizing on price differences between the <a href="https://app.perp.com/markets/ETH:USD/?utm_source&#61;perp_mirror&amp;utm_medium&#61;blog_post" rel="noopener noreferrer nofollow">ETH-USD</a> market on Perp and ETH-USDC spot markets on decentralized exchanges (such as <a href="https://uniswap.org/" rel="noopener noreferrer nofollow">Uniswap</a>). <blockquote>&#x1f92b;In the future, we may even expand the strategy to include many more assets and other chains.</blockquote>The strategy takes advantage of profitable arbitrage opportunities as they occur - when the price of ETH diverges significantly between perpetual futures and spot markets.The more that the markets are volatile during your stay in the Hot Tub, the more this strategy can potentially earn for you. After the strategy executes any arbitrage trades, the vault realizes a return that is the closest thing possible to ‘risk-free’ profit.Learn more about the arbitrage strategy powering the Hot Tub vaults in our latest article: <a href="https://perpprotocol.mirror.xyz/4C_wgtzLk1hJf_3m8IHTI-tYJsWbDGbr1xUodT9DGV8" rel="noopener noreferrer nofollow">https://perpprotocol.mirror.xyz/4C_wgtzLk1hJf_3m8IHTI-tYJsWbDGbr1xUodT9DGV8</a>

Hot Tub Strategy Explained

Perpetual Protocol

Egyéb ezen a dátumon (2023. márc. 15.) megosztott cikkek

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