Since the liquidity in decentralized finance (DeFi) is fractured and price movements don’t propagate to other exchanges, either on the same chain or on other chains, price disparities exist. So-called arbitrageurs can realize these market opportunities by buying a certain token on one market and selling it on a different market as soon as possible for an ideally higher price.
Arbitrageurs provide market stability by taking advantage of price inefficiencies and making simultaneous trades that offset each other to capture profits. To become an arbitrageur one needs sufficient capital to realize the full arbitrage opportunity. Further, arbitrage requires deep technical understanding, since it is typically necessary to create competitive automated trading bots. Since the barrier to entry for this yield-generating strategy is very high, large institutions and already resourceful entities are profiting the most, retail investors are left out of this opportunity.
Interchain Liquidity Protocol
White Whale’s Interchain Liquidity Protocol primarily consists of two components:
- Satellite markets
