#DeFi生态发展 🤔 Just saw a case of UNI burn arbitrage, and I'm a bit confused... Someone burned 4000 UNI and made $14,500? How did they pull that off?
I finally figured it out after looking into it for a while. Turns out, after Uniswap canceled the frontend fee, the contract design created a price spread opportunity. The asset bundle received from burning tokens (USDC, USDT, WETH, WBTC) was actually worth 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 to execute it yourself, plus you have to account for gas costs and the risk of failure. One wrong move and you're in the red. For pure newcomers like us, even though we can understand the logic, it's basically impossible to actually participate...
It seems to reflect an issue in the DeFi ecosystem: opportunities exist, but there's a gap between the barriers and new users. But it was educational regardless—didn't realize the token burn mechanism was so complex and could be exploited like this 😂 Can anyone explain how often these kinds of opportunities pop up? Is it possible to copy the strategy in the future?
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
#DeFi生态发展 🤔 Just saw a case of UNI burn arbitrage, and I'm a bit confused... Someone burned 4000 UNI and made $14,500? How did they pull that off?
I finally figured it out after looking into it for a while. Turns out, after Uniswap canceled the frontend fee, the contract design created a price spread opportunity. The asset bundle received from burning tokens (USDC, USDT, WETH, WBTC) was actually worth 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 to execute it yourself, plus you have to account for gas costs and the risk of failure. One wrong move and you're in the red. For pure newcomers like us, even though we can understand the logic, it's basically impossible to actually participate...
It seems to reflect an issue in the DeFi ecosystem: opportunities exist, but there's a gap between the barriers and new users. But it was educational regardless—didn't realize the token burn mechanism was so complex and could be exploited like this 😂 Can anyone explain how often these kinds of opportunities pop up? Is it possible to copy the strategy in the future?