Usually unwanted, Antfarm needs them

Arbitragers are pragmatic animals: they will swap when there is value to be made. They are looking for discrepancies in the markets and will automatically re-balance the market when they catch one. Antfarm is made for them: when markets will have shifted enough to compensate the high fees of the pool, they will swap, cashing in good-value token and feeding the Antfarm community with high level ATF.

Why would arbitragers be interested in low-volume high-fee pools?

Arbitragers are pragmatic, if they see an opportunity to make money, they will take it, even if it is less often than on a low-fee high-volume pool. For them, a market deviation is a money opportunity.

Eg. Antfarm's WETH/USDC 10% fee pool has a price of 1,000 USDC per WETH. If the price goes over 1,100 USDC in other markets it creates an arbitrage opportunity: buying on antfarm's pool at 1,000 x 1.1 = 1,100 USDC and selling for a higher amount on a public market. It also works in the other direction if price goes below 1,000 / 1.1 = 909 USDC.

Will arbitragers be able to swap often on Antfarm?

No, they won't be able to swap as often as on low-profit pools, but when they will, it will be profitable and for a close to zero risk. Arbitrage is a very competitive field and Antfarm's focus is not towards the type of arbitragers that fight for the more popular pools.

What will arbitragers make of the ATF?

Arbitragers will need ATF to be able to swap on any pool on Antfarm.

They will have many options to effectively use ATF:

  • Holding early on, so that when markets become turbulent they can use ATF extensively to swap on any pool;

  • Buying it just before any trade or group of trades;

  • Buying ATF and then swapping in the same transaction.

Last updated