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RE: AFIT Bridge is LIVE 🌉! Quick Tutorial. AFIT Turning to Ultimate Scarcity! 🤑Digifinex Results In Progress⏳

in LeoFinance2 years ago

Thank you for the explanation. Regarding the active key, I could easily send my AFIT to a new and empty HIVE account and risk-free bridge over, until you have integrated Keychain.

About the arbitrage scenario, I made some basic calculations and the result is actually quite impressive for those who take advantage of it.

Scenario 1: AFIT Price on BSC > $0.10 ➡ Bridge 10,000 AFIT from H-E to BSC

AFIT BSC = $0.12 | AFIT H-E = $0.0012

Buy 10,000 AFIT (H-E) = $12
Bridge 10,000 AFIT (H-E ➡ BSC) + 1,000 HBD bond + 10 HBD fees (= $1,022) 
➡ sell 10,000 AFIT (BSC) = $1,200

Result: $178 profit + $1,000 HBD bond on HIVE

Scenario 2: AFIT Price on BSC < $0.10 ➡ Bridge 10,000 AFIT from BSC to H-E (only works with active $1,000 HBD bond)

AFIT BSC = $0.08 | AFIT H-E = price irrelevant

Buy 10,000 AFIT (BSC) = $800
Bridge 10,000 AFIT (BSC  H-E) + fees
10,000 AFT (H-E) and get $1,000 HBD bond back
Profit: $200 + 10,000 AFIT (minus Bridge fees)

I guess that explains why the price of AFIT on Pancakeswap is constantly coming back to $0.10 (I guess you can call this a peg). Arbitrage is already in full swing. Still not sure what to think about it but I will keep an eye open for any larger price swings to the upside to try this out.

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Thank you for doing these calculations! It didn't make sense until I read this!