🤖Automatic Arbitrage with Flash Loan / Flash Swap

Similar to TIME, TUP also offers an internal exchange functionality using the native network token directly with the smart contract in a local pool. This way, instead of trading externally, users can perform direct token swaps, and the trading fees are distributed proportionally among TUP holders.

Considering this feature, the developers of TUP decided to innovate and implement an automatic arbitrage mechanism with the token. With each transaction, TUP checks the internal asset price compared to the prices on decentralized exchanges (Sushi, Pancakeswap, Uniswap, Quickswap, etc.). If the protocol deems it advantageous, it initiates a Flash Loan procedure to raise the necessary funds for executing the arbitrage. In the event that Flash Loan resources are not available on the network, it can still opt for the Flash Swap mechanism on the decentralized exchange. This way, if an arbitrage opportunity is found, TUP carries out the arbitrage and distributes the profits to TUP holders.

This feature is compelling because even if a bot identifies an arbitrage opportunity involving TUP, the token anticipates it on behalf of the investors.

ATTENTION: Since we rely on third parties protocols for automatic arbitrage, not always will this mechanism function in the same way and correctly on all networks.