Arbitrage

Arbitrage

Although we hope that Scattering can become the optimal pricing market for NFT floor prices in the future, initially, we need to achieve the initial value anchoring of sToken through the Arbitrage mechanism.

We also welcome users to arbitrage between the Scattering market and platforms such as Opensea or the Trove marketplace. This type of arbitrage not only allows arbitrageurs to profit but also contributes to anchoring sToken with the floor price.

We use Smol Brain as an example to illustrate the Arbitrage mechanism:

Scenario 1: The price of 10K sSMOL is lower than the Floor Price of Smol Brain on Trove:

1. Users can purchase 10K sSMOL on the Scattering protocol, then redeem Smol NFT from the Scattering protocol by adding their own Key or purchasing a Key. Afterward, they can list the Smol NFT for sale on the Trove market to make a profit.

2. Users can purchase 10K sSMOL on the Scattering protocol and randomly redeem an NFT from the Common Pool. They can then list the redeemed NFT for sale on the Trove market to make a profit.

Scenario 2: The price of 10K sSMOL is higher than the Floor Price of Smol Brain on Trove:

1. Users can purchase any Smol NFT on Trove Marketplace at the floor price or transfer Smol NFTs they hold in their wallet.

2. Then, they can sell the NFT on the Scattering protocol to receive 10K sSMOL tokens and a directional redemption Key. Afterward, they can sell the 10K sSMOL tokens on the Scattering Trade Market to make a profit.