The Ultimate Guide to Stablecoin Arbitrage: 7 Winning Strategies & How to Master Them
Stablecoin arbitrage has become a cornerstone strategy in the cryptocurrency markets, leveraging price discrepancies to maintain pegs to fiat currencies like the US dollar. As the stablecoin market surges toward a projected $2 trillion by 2028, arbitrageurs play a pivotal role in stabilizing these assets.
The process hinges on buying undervalued stablecoins and redeeming them at their $1 peg or minting new tokens when prices exceed $1. This self-correcting mechanism ensures stability without central oversight, a defining feature of decentralized finance.