#DeFi生态发展 🤔 Just saw a case of UNI burn arbitrage, and I'm a bit confused... Someone destroyed 4,000 UNI and made $14,500? How did they pull that off?
I spent a while understanding it, and it turns out that after Uniswap removed frontend fees, the contract design created a price spread opportunity. The asset package received from burning tokens (USDC, USDT, WETH, WBTC) was worth even more... It feels like picking up a bargain? 😅
But after reading the comments, I realized this arbitrage actually has pretty high barriers to entry—you need to write code yourself to execute it, plus calculate gas costs and failure risks. One wrong move and you lose. For us complete beginners, even though we can understand the logic, it's basically impossible to actually participate...
It reflects a problem in the DeFi ecosystem: opportunities exist, but there's a gap between the barrier to entry and newcomers. Still, it's good knowledge to gain. Never realized the token burn mechanism could be this complex and played like this 😂 Is there anyone who can explain how often these opportunities appear? Can we copy the homework in the future?
#DeFi生态发展 🤔 Just saw a case of UNI burn arbitrage, and I'm a bit confused... Someone destroyed 4,000 UNI and made $14,500? How did they pull that off?
I spent a while understanding it, and it turns out that after Uniswap removed frontend fees, the contract design created a price spread opportunity. The asset package received from burning tokens (USDC, USDT, WETH, WBTC) was worth even more... It feels like picking up a bargain? 😅
But after reading the comments, I realized this arbitrage actually has pretty high barriers to entry—you need to write code yourself to execute it, plus calculate gas costs and failure risks. One wrong move and you lose. For us complete beginners, even though we can understand the logic, it's basically impossible to actually participate...
It reflects a problem in the DeFi ecosystem: opportunities exist, but there's a gap between the barrier to entry and newcomers. Still, it's good knowledge to gain. Never realized the token burn mechanism could be this complex and played like this 😂 Is there anyone who can explain how often these opportunities appear? Can we copy the homework in the future?