Trading in the crypto world, transaction fees are often the hidden culprit eating into profits. But some platforms have thought things through, such as certain DeFi projects that have developed a special mechanism specifically for frequent asset traders.
The key difference lies here: decentralized exchanges or insulin trading generally require a slippage plus fee of 0.3%-0.5% to complete a trade. But with the Lightning Swap feature, the cost is directly cut to 0.00%—entering and exiting without losing a cent.
How to use this for arbitrage? Let’s look at a real case.
Suppose the market looks like this: on a certain DEX, lisUSD is priced at 1.002 USDT (with a premium), while on another platform, USD1 and lisUSD are pegged 1:1. This creates an arbitrage opportunity.
The specific steps are as follows:
First, take out 10,000 USD1. Second, use the zero-fee Lightning Swap to directly exchange into lisUSD—no slippage, no fees, 10,000 in equals 10,000 out. Third, list the obtained lisUSD on another trading platform and sell at the 1.002 price to get USDT. Calculate the profit: 10,000 multiplied by 0.002, which is a solid $20 profit.
If later USD1 becomes discounted, you can continue this cycle. As long as the price difference exists, this operation can keep running. It may not seem like much, but with large numbers and almost zero costs, the gains add up.
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TommyTeacher1
· 6h ago
Zero fee sounds great, but how many can truly achieve stable arbitrage? Most look good on paper, but in practice, slippage eats up the profits.
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GasFeeNightmare
· 17h ago
0 fee? Sounds great, but I'm just worried that the spread might disappear in the blink of an eye haha
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MevShadowranger
· 01-10 16:39
Whoa, zero fees? I need to carefully analyze this trick.
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0xSoulless
· 01-10 13:58
It's the same trick again, zero fees? Haha, once the big players start using it, the next fee rate will come.
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Degentleman
· 01-10 13:57
Zero fee sounds great, but how many can actually turn a profit? Most people still get heavily slashed by slippage.
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OnchainDetective
· 01-10 13:57
Wait, I need to take a close look at the on-chain data for this lightning swap... The 0 fee rate thing seems a bit too perfect. According to on-chain data, there are usually cases where hidden arbitrageurs get cut in such mechanisms. I need to track the fund flow before I can draw a conclusion.
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It's the same old trick. Large repeated arbitrage will inevitably be cleaned up by the AMM, and the price gap disappearing is just a matter of time. These guys should have seen through it long ago.
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Bro, I’ve looked through the on-chain transaction records for a while, and there’s a problem with the peg mechanism of USD1 and lisUSD... Tracking through multiple addresses, it feels like someone is maintaining this premium behind the scenes.
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Arbitrage space of 20 dollars... Once big players run through rounds, slippage will directly backfire, and they won’t be able to run more than a few times.
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Interestingly, this zero fee rate design can easily turn into a tool for wash trading. I’ve already locked onto the target addresses for wallets with abnormal trading patterns.
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What sounds like DeFi innovation is actually just paving the red carpet for large traders’ quantitative trading. Retail investors entering are just the prey for being harvested.
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After analysis and judgment, this mechanism will definitely be broken by arbitrageurs in the end... When that happens, liquidity will evaporate instantly, and the ones taking the bait will be fools.
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NotSatoshi
· 01-10 13:41
This zero-fee trick has been exploited for a long time. It all depends on who is quick enough to fill their wallet.
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FloorPriceWatcher
· 01-10 13:40
Zero-fee lightning exchange? Sounds great, but can this opportunity really last?
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A profit of 20 yuan can't resist the number of trades, but what about the risk? What if the spread is wiped out by arbitrageurs?
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Wait, isn't this just arbitrage? Why does it feel like a new way to cut leeks?
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Alright, large volume can indeed pile up, but I don't know when this mechanism will be changed.
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Zero-fee lightning exchange, I feel like there's some trap hidden behind it.
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Entering 10,000 and exiting 10,000 sounds perfect, but will it really work that way in practice?
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This operation requires enough liquidity to run smoothly.
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With such obvious arbitrage opportunities, won't big players lock it down instantly?
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MEVHunterX
· 01-10 13:35
0 fee? Isn't this an opportunity to exploit? Hurry up and get on board.
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TokenomicsPolice
· 01-10 13:34
Zero fee? I've seen this trick too many times, and in the end, it's always backlash from slippage.
Trading in the crypto world, transaction fees are often the hidden culprit eating into profits. But some platforms have thought things through, such as certain DeFi projects that have developed a special mechanism specifically for frequent asset traders.
The key difference lies here: decentralized exchanges or insulin trading generally require a slippage plus fee of 0.3%-0.5% to complete a trade. But with the Lightning Swap feature, the cost is directly cut to 0.00%—entering and exiting without losing a cent.
How to use this for arbitrage? Let’s look at a real case.
Suppose the market looks like this: on a certain DEX, lisUSD is priced at 1.002 USDT (with a premium), while on another platform, USD1 and lisUSD are pegged 1:1. This creates an arbitrage opportunity.
The specific steps are as follows:
First, take out 10,000 USD1. Second, use the zero-fee Lightning Swap to directly exchange into lisUSD—no slippage, no fees, 10,000 in equals 10,000 out. Third, list the obtained lisUSD on another trading platform and sell at the 1.002 price to get USDT. Calculate the profit: 10,000 multiplied by 0.002, which is a solid $20 profit.
If later USD1 becomes discounted, you can continue this cycle. As long as the price difference exists, this operation can keep running. It may not seem like much, but with large numbers and almost zero costs, the gains add up.