Hey, everyone! LeoDex is a decentralized exchange that offers opportunities for arbitrage, like others do. So, seeing a discrepancy in prices is a money-making opportunity for those who know how to take advantage of it.
In this clip:
- Price discrepancies are opportunities to arbitrage
- Bots usually do the arbitrage
- LeoDex's business model is to collect the swap fees and buy $LEO
- Payment mechanisms using Leo Merchants
Hive can sometimes be higher on LeoDex than on other exchanges, due to how the liquidity pools work. This is an arbitrage opportunity where you can buy cheaper elsewhere and sell on LeoDex, collecting the spread as your arbitrage profit.
This is usually taken care of by bots, but it's possible to find price discrepancies that you can arbitrage yourself and collect the profits. That's what we aim to do with LeoDex, to be the platform where transactions occur, collecting small fees in the backend that then go towards buying $LEO from the market.
One strategy to boost swap volume and fee collection is through Leo Merchants, allowing businesses to accept payments in various cryptocurrencies and settle in their preferred token. For example, a business accepting only Dash can receive payments in Rune, BTC, ETH, or others, with LeoDex converting the payment to Dash for the business's wallet.