USDC Low Bid Arbitrage

  • Posted December 17, 2021

Disclaimer: This post applies to non-Americans, take note, federal agents. The information herein is for entertainment purposes. Due to jurisdiction, only a small subset of the world’s population can even utilize this potential arbitrage.

Volatility provides opportunity, for those who practice patience.

In this case, one can compare the USDC pairs of Bitcoin and Ethereum during brief spikes of volatility… specifically, the most recent event on December 4, 2021.

Ethereum

For this solely recreational comparison… when comparing the ETH/USDC pairs on Huobi, Binance, Coinbase, Kraken, Kucoin, Poloniex, you would find that there is about a 10 minute window in which one could get Ethereum and a major discount on Huobi when compared to other exchanges.

As you can see… the low on Ethereum was $3,046 on Huobi. But among the other 5 exchanges, the lowest low was $3,540. That presents a 14% discount.

A non-American could theoretically place USDC low bid arbitrage orders for Ethereum at times of expected tumult in the market… or for long periods of time, patiently waiting for the right conditions. This could be either to add to one’s portfolio… or.. to immediately sell back into USDT, which would present the arbitrage opportunity. The USDT pair on Huobi does not show this discrepancy as the USDC pair does. In fact, the USDT pair on Huobi is very much in line with the USDC pairs of all the other exchanges.

Bitcoin

When comparing the BTC/USDC pairs, there is a similar situation. Looking at Huobi, Binance, Coinbase, Bitstamp, Kucoin, Poloniex, Okex, once again, Huobi is notably illiquid.

This time, the low on Bitcoin was $28,801 on Huobi, while among the other 6 exchanges, the lowest low was $41,704. That presents a 31% discount!

In closing, obviously, it is highly unlikely that one catches the bottom. And using the lows for these examples only gives the extreme differences of 14% and 31%. However, even though these USDC pairs are very illiquid on Huobi, perhaps it would be worth it for those who are gonna spread out USDC low bid orders anyway, to do some of them on Huobi and maybe get filled at 5% or 10% below the other exchanges… if they are non-American, that is.

In God’s Will

UIOGD – JMJ