Arbitrage

Let's illustrate the arbitrage process using a hypothetical price for TREES.

Suppose the price of TREES jumps to $10 USD, but the TREES pod token remains at $9.50 USD, creating a 5% difference:

  1. Buy TREES pod tokens on Uniswap.

  2. Unwrap pod tokens to get TREES for a small fee.

  3. Sell the acquired TREES on Uniswap to profit.

If the price of TREES pod token exceeds that of TREES:

  1. Buy PEAS on Uniswap.

  2. Wrap TREES into TREES pod tokens for a small fee.

  3. Sell the Pod tokens on Uniswap to make a profit.

In both scenarios:

  • The arbitrageur profits.

  • Fees in pod tokens from wrapping or unwrapping are burned, enhancing its value for Trees pod token holders.

  • Remaining fees are utilized to purchase PEAS tokens, benefiting all PEAS holders.

  • 10% of the purchased TREES tokens are burned, reducing the supply.

  • 90% of the acquired TREES tokens are distributed as rewards to the staked liquidity providers of the pod token pair.

With the addition of more pods and liquidity, these arbitrage opportunities expand, benefiting users and the entire TreePods ecosystem. [INSERT INFOGRAPHIC FLOW CHART]

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