In both the modern business world and the field of encryption, success often does not rely on revolutionary innovation, but rather on effectively utilizing market asymmetries to engage in "Arbitrage." Crypto KOL Crypto Weituo pointed out that the real winners are not those who create the rules, but rather the arbitrageurs who can act quickly, leverage their positions, and tell compelling stories.
Arbitrage is the underlying logic of encryption and business.
For most people, the dream of starting a business or investing often comes from the vision of "changing the world," but encryption Weituo bluntly stated that unless you are Jobs or Huang Renxun, most people are actually just engaging in arbitrage at different levels:
"Arbitrage (Arbitrage)" is the act of profiting from the "asymmetry (asymmetry)" in the market.
( encryption market reality: an analysis of the black box manipulation scripts of market makers and VCs, the infinite cycle of bubbles and yield farmers )
He cited examples that these asymmetries may come from:
Geographical location ( such as trade )
Cognitive differences ( like the banking industry )
Regulatory gap ( like encryption currency )
For example, the trading platform Hyperliquid utilizes regulatory Arbitrage, disguising centralized exchanges as blockchain, successfully attracting a large amount of trading liquidity. This shows that the key to success lies not in creating something new, but in seeing who can first identify and exploit the "arbitrage space."
(Are we heading towards the Hyperliquid generation? From liquidity and risk disassembly for the development of decentralized exchanges)
Three key questions: Teach you how to assess the size of arbitrage opportunities.
To help readers identify arbitrage opportunities, he also provides an analytical framework that focuses on three core issues:
Who am I trapping the benefits from: Who is the target? What resources can be utilized?
What kind of trap benefits: What is the difference? Rule loopholes or market mismatch (mismatch)?
How much space: How much profit can this asymmetry generate?
He cited two different levels of arbitrage examples:
Shallow Arbitrage: For example, Hyperliquid packages a fundamentally centralized exchange in a decentralized form to circumvent regulation.
Deep Layer Arbitrage: While the gambling industry appears to profit from gamblers, it actually engages in arbitrage using money laundering funds.
He shows that if you want to become a successful project owner or investor, these three issues must not be ignored.
Tell an "Arbitrage story": Narrative is the engine of capital.
In this era where narrative drives attention and capital, the logic of arbitrage is not just a strategy, but a "story". As long as the story is told well, even a Ponzi scheme can attract significant funds.
(Arthur Hayes on the importance of storytelling: technology is not important, storytelling is the key to a successful project )
Several representative narratives or examples include:
Bitcoin Mining: The Narrative of Energy Arbitrage, Creating High Value Using Cheap Electricity.
Plustoken: On the surface, it is arbitrage by moving bricks, but in reality, it is a scam, using arbitrage to attract participation.
USDE: Create an arbitrage narrative with a neutral strategy to attract liquidity.
The common point of these stories is: "simple, easy to understand, and seemingly controllable risks." It is precisely because of this that they can quickly expand their influence, even surpassing the other underlying derivative risks.
The leverage battle of stablecoins: whoever can seize the market first wins.
The success of stablecoins relies not just on stability, but on "leveraging to expand arbitrage opportunities." He emphasized that USDE is a representative case, continuously attacking the lending market through high leverage:
Leverage strategy using Pendle PT/YT
Combining JLP ( Jupiter Perp liquidity provider ) trap design to accelerate the efficiency of capital inflow and outflow.
The key to this strategy is: "With sufficient leverage, quickly lock in arbitrage opportunities and occupy market liquidity, you can push back competitors."
Seizing Screen Time: From Investment Gambling to Live Streaming Coin Promotion
Attention is the most scarce resource. Modern projects are beginning to gamify investment, merging "making money" with "entertainment":
Pump.fun: Transforming social media time into gambling-style token trading.
Sidekick: Real-time buy and sell suggestions provided by KOL streamers, combined with live interaction to attract tips and trades.
The success of these platforms comes from understanding human nature:
Dopamine is the driving force, not rational analysis. Turning attention into an Arbitrage tool is the key to their victory.
(What are you shouting about! A detailed explanation of the LOUD mechanism that is widely discussed online, a new experiment combining attention economy with Ponzi? )
Become an arbitrageur, not a dreamer with unrealistic ideas.
Encryption Veda finally reminds that the market competition is fierce and the arbitrage space is scarce. Instead of fantasizing about creating products that will disrupt the world, it is better to pragmatically pursue arbitrage opportunities. He also gives participants three suggestions on this matter:
Accurately analyze arbitrage opportunities: Ask yourself the three questions above.
Quickly enlarge leverage: first seize the market, then optimize the business model and other details.
If there is no clear strategy, do not take action: this is not a laboratory, it is an arena (PVP)
Arbitrage is the operational model of the vast majority of business activities in this world. Finding the right direction, telling a good story, and amplifying execution capability can lead to the possibility of winning.
This article "When 'Market Asymmetry' Becomes the Logic of Success: Three Questions to Teach You How to Identify and Utilize Arbitrage Opportunities" first appeared in Chain News ABMedia.
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When "market asymmetry" becomes the logic of success: three questions teach you how to identify and take advantage of arbitrage opportunities
In both the modern business world and the field of encryption, success often does not rely on revolutionary innovation, but rather on effectively utilizing market asymmetries to engage in "Arbitrage." Crypto KOL Crypto Weituo pointed out that the real winners are not those who create the rules, but rather the arbitrageurs who can act quickly, leverage their positions, and tell compelling stories.
Arbitrage is the underlying logic of encryption and business.
For most people, the dream of starting a business or investing often comes from the vision of "changing the world," but encryption Weituo bluntly stated that unless you are Jobs or Huang Renxun, most people are actually just engaging in arbitrage at different levels:
"Arbitrage (Arbitrage)" is the act of profiting from the "asymmetry (asymmetry)" in the market.
( encryption market reality: an analysis of the black box manipulation scripts of market makers and VCs, the infinite cycle of bubbles and yield farmers )
He cited examples that these asymmetries may come from:
Geographical location ( such as trade )
Cognitive differences ( like the banking industry )
Regulatory gap ( like encryption currency )
For example, the trading platform Hyperliquid utilizes regulatory Arbitrage, disguising centralized exchanges as blockchain, successfully attracting a large amount of trading liquidity. This shows that the key to success lies not in creating something new, but in seeing who can first identify and exploit the "arbitrage space."
(Are we heading towards the Hyperliquid generation? From liquidity and risk disassembly for the development of decentralized exchanges)
Three key questions: Teach you how to assess the size of arbitrage opportunities.
To help readers identify arbitrage opportunities, he also provides an analytical framework that focuses on three core issues:
Who am I trapping the benefits from: Who is the target? What resources can be utilized?
What kind of trap benefits: What is the difference? Rule loopholes or market mismatch (mismatch)?
How much space: How much profit can this asymmetry generate?
He cited two different levels of arbitrage examples:
Shallow Arbitrage: For example, Hyperliquid packages a fundamentally centralized exchange in a decentralized form to circumvent regulation.
Deep Layer Arbitrage: While the gambling industry appears to profit from gamblers, it actually engages in arbitrage using money laundering funds.
He shows that if you want to become a successful project owner or investor, these three issues must not be ignored.
Tell an "Arbitrage story": Narrative is the engine of capital.
In this era where narrative drives attention and capital, the logic of arbitrage is not just a strategy, but a "story". As long as the story is told well, even a Ponzi scheme can attract significant funds.
(Arthur Hayes on the importance of storytelling: technology is not important, storytelling is the key to a successful project )
Several representative narratives or examples include:
Bitcoin Mining: The Narrative of Energy Arbitrage, Creating High Value Using Cheap Electricity.
Plustoken: On the surface, it is arbitrage by moving bricks, but in reality, it is a scam, using arbitrage to attract participation.
USDE: Create an arbitrage narrative with a neutral strategy to attract liquidity.
The common point of these stories is: "simple, easy to understand, and seemingly controllable risks." It is precisely because of this that they can quickly expand their influence, even surpassing the other underlying derivative risks.
The leverage battle of stablecoins: whoever can seize the market first wins.
The success of stablecoins relies not just on stability, but on "leveraging to expand arbitrage opportunities." He emphasized that USDE is a representative case, continuously attacking the lending market through high leverage:
Leverage strategy using Pendle PT/YT
Combining JLP ( Jupiter Perp liquidity provider ) trap design to accelerate the efficiency of capital inflow and outflow.
The key to this strategy is: "With sufficient leverage, quickly lock in arbitrage opportunities and occupy market liquidity, you can push back competitors."
Seizing Screen Time: From Investment Gambling to Live Streaming Coin Promotion
Attention is the most scarce resource. Modern projects are beginning to gamify investment, merging "making money" with "entertainment":
Pump.fun: Transforming social media time into gambling-style token trading.
Sidekick: Real-time buy and sell suggestions provided by KOL streamers, combined with live interaction to attract tips and trades.
The success of these platforms comes from understanding human nature:
Dopamine is the driving force, not rational analysis. Turning attention into an Arbitrage tool is the key to their victory.
(What are you shouting about! A detailed explanation of the LOUD mechanism that is widely discussed online, a new experiment combining attention economy with Ponzi? )
Become an arbitrageur, not a dreamer with unrealistic ideas.
Encryption Veda finally reminds that the market competition is fierce and the arbitrage space is scarce. Instead of fantasizing about creating products that will disrupt the world, it is better to pragmatically pursue arbitrage opportunities. He also gives participants three suggestions on this matter:
Accurately analyze arbitrage opportunities: Ask yourself the three questions above.
Quickly enlarge leverage: first seize the market, then optimize the business model and other details.
If there is no clear strategy, do not take action: this is not a laboratory, it is an arena (PVP)
Arbitrage is the operational model of the vast majority of business activities in this world. Finding the right direction, telling a good story, and amplifying execution capability can lead to the possibility of winning.
This article "When 'Market Asymmetry' Becomes the Logic of Success: Three Questions to Teach You How to Identify and Utilize Arbitrage Opportunities" first appeared in Chain News ABMedia.