ARBITRAGE ON PULSE

How Arbitrage Bots Work with Printer Tokens

Arbitrage bots have a 100% guarantee they will affect the price in a negative and a positive way depending on all connected liquidity assets to any token on pulsechain as long as there are 2 or more liquidity pools that a token can trade between.

EX: Remember/PLS v2 and Remember/pDAI v2

The way these bots justify the way they trade is by balancing the price between two pools to make a profit. The bots detect a price different from a trade happening on any assets and compares the ratio to other pairs they can swap with. Bots will simulate the transaction and as long as it deems profitable the transaction will go through the multi-pair swap.

With this example below we are using 3 stable coins all worth $1
EX: Liquidity pool has 
1 USDT/1 USDC (this pair is 1:1)
Let's say someone makes BRAND NEW liquidity pool with eDAI
1 USDT/0.5 eDAI (this pair is 2:1)

The bot detect the price different and say "I can buy 1 USDT for 1 eDAI so it will use eDAI to get more USDT and then it will take the USDT purchased from the eDAI pool and sell it for 1:1 for a profit.

HOW DOES THIS PLAY INTO PRINTER TOKENS

If you're this far into reading, you already know printers sell tokens held within the token contract that are minted and supplied.

As the contract sells tokens to produce rewards, liquidity and burns