Submitted by m_Rassska, also found by SBSecurity, Aamir, d3e4, adriro, CatsSecurity, jayfromthe13th, Bauchibred, deth, 0xDING99YA, HChang26, almurhasan, PENGUN, anarcheuz, and circlelooper
See original submission for full details.
Basically, price feeds dont have to reach those extreme boundaries in order to profit from it. In theory presented above we were able to get +2.3% profit, which is significant in case there is a huge liquidity supplied. The combination of deviations might be absolutely random, since it operates in set of rational numbers. But it will constantly open a small [+1%; +1.5%] arbitrage opportunities to be exploited.
Short term:
Long term:
Math
gus (Kelp) disputed and commented:
0xDjango (judge) commented:
Note: see original submission for full discussion.
