Volatility farming

Since asset prices are always fluctuating, both users and bots are constantly seeking arbitrage chances to make fast profits. TreePods takes advantage of this by generating new arbitrage opportunities. With pods in place, arbitrageurs gain a secondary market where price differences can arise for the same asset, presenting profitable opportunities.

Arbitrage opportunities related to pods arise when the prices of the original assets and pod tokens differ by more than the cost of wrapping or unwrapping. When users exploit these opportunities with pods, protocol fees are collected and distributed based on the pod setup.