In January I made $708 profit from passively looking for opportunities to Arb Trade WSTA into STA using Spookyswap.
Mostly I would check in my morning and a few times through the day, and take a trade if I could pocket ideally more than 200 STA. I skipped plenty where the profit was smaller than 100 STA, but in total I made 31 Txs, paid $7 total in gas, and profited 26k STA, worth $708 (at today's STA price of $0.025). Cool.
Here's all the data, and you can see it direct onchain in my wallet: 0xa66589142c46a20e747c68987a0cd46e5bc9ffc8
Wait, WTF is Statera!?
If you're new to Statera I won't get in-depth here, just read the Statera website. Quickly - it is THE O.G. Burn project from 2020 (1% of every tx is burnt - i.e. I send you 100 tokens, you only receive 99, and so far 20%+ of the original supply has been burnt). It had its run ups and had its falls, but while other burn project / fee on transfer projects had their pump and dumps and got abandoned by their founders/teams, Statera stuck around through the hard times.
Specifically the real hard time was the ETH gas prices - to make a trade it's $60+ on ETH often, which means there needs to be an Arbitrage/trade opportunity often of more than $60 , say $61, to tx/arb $1 worth of STA. Trade volume ground to a halt, so did price, so did burns.
Recently, STA is BACK! Moved onto Fantom, where gas fees per trade are often $0.06 (or $7 for 31 txs total) it has it's main pairs and liquidity on Spookyswap, and it's main fund ($450k worth of BTC, ETH, FTM, BEETS, and STA) on Beethovenx as the Dante Symphony Fund.
I burnt 5k STA
So, as well as earning $708 in profit, across just 31 txs, all just from me, passively, I burnt 5k STA total too. This is approx 0.006% of total supply burnt forever , not too bad for passive arb lol
The numbers highlighted in pink are interesting to me too - they are where the amount of STA burnt was MORE than the STA profit (but it was still profitable, they are all profitable of course)
The Method
So, that's it really, and I think it's self explanatory. Sit on Spookyswap and try to swap 10,000 WSTA for 10,200+ STA. But some logic:
It needs to say at least 200+ extra , i.e. 10,000 for 10,200 as the act of making the trade it will burn approx 100 STA on a 10k STA tx. So you will only receive 10,100, and so then when you next want to send your 10,100 STA on or to sell it, it will burn 100 on that action too - so in this instance 10,200 would be the minimum needed to break even / any amount more than 200+ extra would be profit. Or if you are swapping a smaller amount, adjust, say 5000 must Arb to 5100+. Of course ideally MUCH more, and much more is possible.
Oh, and the extra logic, the basics and limitation - yes WSTA stands for Wrapped STA. And 1 STA is wrappable, or un-wrappable, 1-1 . WSTA was created as some exchanges, namely Balancer (or Beethovenx on Fantom) are not contractually compatible / safe with "fee on transfer tokens", so in the Dante fund on Beethovenx it is WSTA trading - so the limitation is that currently it is only wrappable/unwrappable on the Ethereum chain, so in an ideal world you could make the Arb transaction, then re-wrap, then make another and re-wrap after every transaction - as it stands you have to save up until its worth it to wrap a larger amount of STA as ETH gas costs are too high - you can Arb for pennies in profit or just a few $s at a time but need to save these up to larger batches.
Find the wrapper smart contract directly on Etherscan: https://etherscan.io/token/0xedeec5691f23e4914cf0183a4196bbeb30d027a0#writeContract
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Select wrap
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Enter the token amount
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Select the + and choose 10^18
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Select write to wrap
What is Happening?
What is happening to create an arbitrage opportunity is, well, possibly a few things but:
- the most simple is someone is buying WSTA, then the price of WSTA trades higher than STA, so you can come along and arbitrage trade the price of WSTA back to the same as STA as described above.
- what is more often happening is a trade is happening in the Dante Symphony Fund - say the price of FTM rises quickly by 10% on it's main markets, then in the Dante pool FTM is still available cheaper - it quickly gets bought up and arbitrage sold out elsewhere, but then the balances of tokens in the Dante pool get unbalanced too - FTM has to be 20% of the pool, STA 30% etc etc - the price rise in FTM actually creates the gap for the other assets in the pool to be rebalanced - in this case the price of WSTA is balanced up 10% in price there too, to balance to the the new price of FTM and other assets in the pool - which in turn creates the arb opportunity. :)
Hope you found it interesting, I know it's like giving out free alpha / free $$$ - and yes there is an arb available right now - go try it on Spookyswap! Why give this info out? Really, I am the uber, ultimate STA Maxi. I want 5-10 other people competing to take these arbs and arbing MORE than I can and BURNING MORE STATERA. I know I'd be going to profit 40-100x gain in STA price when this really gets going, and it will get going faster if there's 10 people all Arbing 10x as much volume rather than just a few of us ;)
