I could start by describing how MOSDEX works, but a couple of articles have shone enough light on how the arbitrage protocol works and how this can be exploited to make passive income. As straightforward as MOSDEX might seem, the mode of operation, as described by the project teams shows that it is powered by some complicated technologies, and the management arm is guided by stiff rules. If you wish to start earning on MOSDEX today, click here to register and receive 30 USDT for free.
For a staker and the everyday cryptocurrency investor, MOSDEX basically maximizes capital through its single-side staking program and extra reward plans. But for exchanges, it plays another role while surfing orderbooks for price differences.
A brief flashback; MOSDEX assumes custody of funds staked by investors on the platform and used these funds to trade arbitrage across integrated exchanges. MOSDEX has plugged the arbitrage bot into a number of high-profile exchanges to do this. These exchanges, while feeding the arbitrage protocol with profit also benefit from it through the additional liquidity it provided the exchanges.
Assets under the custody of the trading both are well over six figures in total worth. While there are no sufficient data to prove the exact figures under the protocol’s custody, information from trades executed and shown on the platform suggests that the protocol controls over a million dollar in total assets. The average daily trading volume of the protocol as reported on the platform is over $300 million. This is spread across more than 5 exchanges.
Liquidity is basically the density of orders on each side of the trade. Sufficient liquidity means that traders can easily buy and sell assets without distorting the progression with every trade request. The arbitrage protocol, adds value to the exchange with it each trade it makes and serves a purpose for traders who also benefit from a strong liquidity. It is safe to say that the protocol furnishes the crypto space with over $200 million in liquidity per day.
Exchanges also benefit from the fees paid by the protocol each time it runs a trade on an exchange. In the real essence, the net profit made by the bot is the difference of the gross profit made in each trade and the charges paid for that particular trade. The poled difference is the overall net profit.
In one gulp, MOSDEX provides value for multiple factions of crypto enthusiasts. On one hand are the stakers who are the main beneficiaries of the protocol. On another hand are exchanges that enjoy increased liquidity and on another hand are traders who get to benefit from this liquidity.
The main positive of this is that anyone can benefit from at least one of these. A random crypto holder can commit their asset to the bot while any trader gets to enjoy more liquidity. This two are the principal use cases for the everyday trader.
Having said this, do carry out due research on every project, even outside the crypto space before investing in them, and also note that this content is only educational and no part is financial advice.