- Lightning Loan arbitrage robot had spent a total of 4 ETH as gas fees in order to arbitrage a total of 8000 USDC tokens from the Uniswap exchange
- The giant whales used almost 1.79 million USDT to purchase a total of 400000 ETH covering 10% of the total Ethereum balance in the cryptocurrency exchange
- the whale pushed Ethereum’s price to slightly below the $450 levels
According to the Asian blockchain news agency Pan news, the decentralised application Lightning Loan arbitrage robot had spent a total 4 ETH as gas fees in order to arbitrage a total of 8000 USDC tokens from the Uniswap exchange. As mentioned above, Lightning Loan is a small sector in the applications of Decentralised Finance which aims at enhancing the utility of funds. It enables users to complete transactions related to borrowing and repayment of the loans in the same chain without requiring any collateral. Moreover, the users and developers are allowed to create their very own chain for borrowing and repayment purposes.
17.9 Million USDT To Purchase 400,000 ETH
The giant whales used almost 1.79 million USDT to purchase a total of 400000 ETH covering 10% of the total Ethereum balance in the cryptocurrency exchange, Uniswap. Approximately 6 steps were involved in borrowing and repayment and a total of 15 token transfers occurred on the chain.
First, the whale borrowed a total of 405,067.106448 USDC from dy/dx exchange and then swapped it with 400500 USDC for 1,071.715628795502233433 Ether on Uniswap. Again it swapped 1,071.715628795502233433 Ether for 492,798.99809 USDT on Uniswap. Followed by which it borrowed 492,730.278141 USDC from Aave. Next it swapped 492,798.99809 USDT for 492,730.278141 USDC OnCurve.fi. And finally, paid back the entire amount to dy/dx.
Approximately $2 Million Lost in the Process
However, in the process, the whale pushed Ethereum’s price to slightly below the $450 levels. But a total loss of $2 million is estimated due to slippage during the transactions. Before the transactions the Ethereum was valued at $400, bringing the transaction to a total of $16 million including the above-mentioned loss of $2 million. Had been the transaction conducted in any centralized exchange, the slippage charge would be much less. The USDT that the whale received comes from an address at the Huobi cryptocurrency exchange. Finally, the ETH was transferred to new-minted addresses.