Arbitrage Opportunities

To highlight this vital part of the ecosystem, arbitrage opportunities are described here. Due to the valuation of the DVE token in BNB rather than directly in USD, fluctuations in BNB's value create opportunities to sell DVE tokens within the liquidity pair and repurchase them from our website at a lower price, thereby generating a profit. Conversely, one can buy DVE tokens more cheaply in the pair following a drop in BNB’s value and sell them for a higher price when it returns to $1.

Immediately after DVE tokens are repurchased from the liquidity pair and burned by us, the price experiences a sharp increase, creating an opportunity to sell DVE tokens in the pair at a profit and then repurchase them from our website.

After the introduction of the order book, two additional arbitrage opportunities arise. The first is to place a sell order above the purchase price and wait for another buyer or our token buybacks for burning to fulfill the order, without risking the loss of BNB generated. The second is arbitrage between the liquidity pair valued in BNB and the order book valued in stablecoins, taking advantage of BNB price fluctuations.