Understanding Arbitrage. At the beginning I held 0.0004 9000 tBTC and I noticed there was an arb opportunity with WBTC. I placed a trade at 0.0001 one at a time to check what was happening as this was my first time. The first return was at 0.00010101. In total I traded 0.00049 tBTC and for 0.0004 9423 WBTC. A 0.0000 0423 BTC different on two product that aught to be in par. I was trying to figure out where this risk was coming from until I noticed on the LP pricing page there was an indicator that 1 tBTC = 1.0074 3000 WBTC at the time of writing this. Thats when it clicked that there is still 0.0074 3000 arb opportunity until the the balance goes to zero, or closing the gap so to say.

I quickly looked up what the price difference on coingecko for WBTC and it was 1 WBTC = 1.0017 7480 BTC. Which means that WBTC is undervalued for both tBTC by 0.0074 3000 points and BTC at 0.0017 7480 points. Or at USD conversion rate at 62 008.58 a tBTC BTC total of 569.62 USD. That’s a handsome sum for an arbitrage.

I looked up how to redeem WBTC on BitGo’s website and saw they require KYC. So I can’t bridge it to the BTC chain, and I know tBTC’s bridge has a threshold a minimum too.

I was looking at BOB history and see my original bridge amount was 0.0005 0000 BTC and received 0.0004 9000 tBTC which equals the sum from the beginning. This mean I paid a fee of 0.0000 1000 BTC total which include the bridge fee and the tx fee which was at 27,1 sat/vB! (currently its holding at 10 to 20 sat/vB).

In summary I bridge 0.0005 BTC, paid a 0.0000 1000 BTC fee and the arbed into WBTC earning 0.0000 0423 BTC back. Or close to half the bridge fee.

What to do from here with the WBTC. I explored meme coins and failed miserably.

I can put the WBTC and earn SPICE on lending. And then from there I can also set up a bot when the WBTC/tBTC ration flips. Pull out the lending and arb again the gap. I was looking at the history of trades and noticed that users do trade from WBTC to tBTC. The reason I’m sure they have but this explains why there was lower liquidity on the tBTC side hence the arb opportunity.

I do still have 0.003 BTC at my disposal which I can bridge into BOB, but again the bridge time take more than several days missing this opportunity for closing the gap. I wish there was a bot that I can use to get updates. BOB is such a new project they don’t have such widgets for now. No dev has built it out yet.

But I should brdidge some anyway even the gap is gone for it will open again. Considering at a valuation level WBTC in my opinion is less valuable to the ethos of BTC. But for now I will put it in lending and earn SPICE.

Understanding Arbitrage. At the beginning I held 0.0004 9000 tBTC and I noticed there was an arb opportunity with WBTC. I placed a trade at 0.0001 one at a time to check what was happening as this was my first time. The first return was at 0.00010101. In total I traded 0.00049 tBTC and for 0.0004 9423 WBTC. A 0.0000 0423 BTC different on two product that aught to be in par. I was trying to figure out where this risk was coming from until I noticed on the LP pricing page there was an indicator that 1 tBTC = 1.0074 3000 WBTC at the time of writing this. Thats when it clicked that there is still 0.0074 3000 arb opportunity until the the balance goes to zero, or closing the gap so to say.

I quickly looked up what the price difference on coingecko for WBTC and it was 1 WBTC = 1.0017 7480 BTC. Which means that WBTC is undervalued for both tBTC by 0.0074 3000 points and BTC at 0.0017 7480 points. Or at USD conversion rate at 62 008.58 a tBTC BTC total of 569.62 USD. That’s a handsome sum for an arbitrage.

I looked up how to redeem WBTC on BitGo’s website and saw they require KYC. So I can’t bridge it to the BTC chain, and I know tBTC’s bridge has a threshold a minimum too.

I was looking at BOB history and see my original bridge amount was 0.0005 0000 BTC and received 0.0004 9000 tBTC which equals the sum from the beginning. This mean I paid a fee of 0.0000 1000 BTC total which include the bridge fee and the tx fee which was at 27,1 sat/vB! (currently its holding at 10 to 20 sat/vB).

In summary I bridge 0.0005 BTC, paid a 0.0000 1000 BTC fee and the arbed into WBTC earning 0.0000 0423 BTC back. Or close to half the bridge fee.

What to do from here with the WBTC. I explored meme coins and failed miserably.

I can put the WBTC and earn SPICE on lending. And then from there I can also set up a bot when the WBTC/tBTC ration flips. Pull out the lending and arb again the gap. I was looking at the history of trades and noticed that users do trade from WBTC to tBTC. The reason I’m sure they have but this explains why there was lower liquidity on the tBTC side hence the arb opportunity.

I do still have 0.003 BTC at my disposal which I can bridge into BOB, but again the bridge time take more than several days missing this opportunity for closing the gap. I wish there was a bot that I can use to get updates. BOB is such a new project they don’t have such widgets for now. No dev has built it out yet.

But I should brdidge some anyway even the gap is gone for it will open again. Considering at a valuation level WBTC in my opinion is less valuable to the ethos of BTC. But for now I will put it in lending and earn SPICE.