GuildSwaps: Arbitrage
GuildSwaps Arbitrage (GSA), was created to caters to the following needs/circumstances:
As a tool for strategic partners; making their RePeg efforts more efficient and effective.
To facilitate the RePeg of specific whitelisted derivative tokens.
To encourage arbitrage activity that removes excess supply from the market.
If none of the above satisfy your intent, review: GuildSwaps: FARM, which caters to the inverse.
Purpose.
The GSA (internally referred to as the 'RePeg Engine'), was created to assist 3's strategic partners in maintaining the peg between their respective CRV derivative tokens and the CRV token.
Function.
For Arbitrage to occur, the following is required:
The target derivative must be off-peg, AND
The target derivative must be below peg, AND
The target Arb.Engine must have at least 1x VW3 vote allocation, AND
The target Arb.Engine must have a GUILD balance, OR
The connected wallet seeking to participate must have a GUILD balance.
Assuming all the above conditions are satisfied AND there exists a crvUSD balance in the target Arb.Engine, then arbitrage activity may occur.
Model.
Arb.Fees.
Advantage.
To entice participants, the GSA offers to purchase whitelisted (CRV) derivatives for the market price of CRV plus an Arb.Fee, regardless of the derivative's peg status.
Each derivative token will receive the market price of an equal number of CRV tokens.
Eg. 10,000 sdCRV tokens will receive the market value of 10,000 CRV tokens.
Payments occur in the protocols designated stable (currently crvUSD).
Disadvantage.
GUILD tokens are not issued when Arbitrage occurs, and
Arbitrage activity does not accrue any 3fi token allocations.
Arb. Engines.
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