I love the answers given by ChapGPT, this has been a debate before. From chatGPT arbitrage trading do not have any significant change on token prices. Mostly it favors the owner of that bot.
So when there is no volume arbitrage feed on the other pairs prices right?
than you maybe asked the wrong question and dont give chatGPT all details. its a simple math, if you pay 0,2% with every trade this amount will be stored in the liquidty pool. mean that you âburnâ 0,2% with every trade, or add 0,2% liquidty with every trade.
ChatGPT dont know that ETH is a very volatil market. i think here you need to give the AI much more details and statistik. but this is what i mean with there is always a differnt between theory and practice.
in a time of no buy and sell you will see that your token go up and down with the movement of the paired token and follow always the stronger pair. This means that pairing can bring a positiv or negativ effect to your token. because this is where impermanten loss jumps in.
mmm, I used the same answer you stated in your submission. still not clear, trade from arbitrage burns or add liquidity?
it add liquidty, but the LP is locked forever and thats why its also burned. but you need to tell chatgpt this because AI dont add values that you know, that are clear in the arbitrage and Swap Defi space but it not clear for the AI.
AI give you the anser of your question deppend on the details you provide.
Chat GPT say:
Keep in mind that if there is little to no trading volume for the new token in other liquidity pools or markets, the price may not see significant movements, even with a deflationary mechanism in place
this is not true. follow arbitragebots and see how much volume they generate. But here we come back to the point that you need to give ChatGPT here more details about the daily movement of a specific token.
Because more volatil token give more trading volume. thats why i recomand to use ETH and not BTC. And BTTC give because of the low fees a perfekt enviroment for this project.
Oh ok this is another topic, arbitrage generates volumes right? Then thatâs not organic or?
This is like wash trading @Gordian
washtrading is a fake volume where the same user buy and sell it own token to generate volume. arbitrage volume is a real volume which is generated through arbitrage opportunities.
all good sirâŠkeep building
still going through if anything I will let you know
all the best
@OIL here is my post about Wash trading
Bienvenido a este S5, mi pregunta es la siguiente, Si su token estĂĄ basado en el petroleo, que motivo tiene para ser deflaccionario, o bien se le ha llamado petroleo sin tener nada a ver con la materia prima.
PodrĂa resolver mis dudas, gracias.
This is an interesting topic with lots of ideas.
I have questions about arbitrage trading,(1) is arbitrage trading legal in Nigeria and other countries
(2) What is an example of arbitrage trade
Hi Oil Token, please is there any risk involved in arbitrage trade and what are the benefits.
Welcome to Season 5, it was really interesting reading through seeing it is 100% AI centred. I got just one question;
Have any simulations or models been conducted to estimate the potential price increase of Oil Token over time based on different levels of trading volume and deflationary burn rates?
Welcome Oil Token to Tron Hackathon season 5
It good to have you here.
I just need a little clarity.
1)Is your project aimed at preventing arbitrage trading ?
2) asides using Ai to generate your logo and your project prompt what other use of Ai are we looking foward to see on the Oil token project.
Is Oil Token going to have NFTâs ?
thats i real good question. and i will try to figure out to feed chatgpt with trading volume. maybe we can get some statistik form geckoterminal.
no plans now but why not.
its definity legal. arbitrage is just when you buy low on one DEX/CEX and sell higher on a different.
The main problem of many project/token is liquidity. with an decentralized arbitrage strategy you can built both. BUT!!! Longtherm!! with arbitrage we dont speak about pump a token, we talk about to built up between 2-10% more liquidty per year.