Taxless Arbitrage

Arbitrage is the process of buying on an exchange where prices are low and immediately selling on another exchange where prices are high in order to make a profit.

Arbitrage is healthy as it balances prices and increases volume.

Someone will arb Pawthereum no matter the outcome of this vote. This proposal asks “if someone is going to profit on the arbitrage of Pawthereum, why not have the project be the profiter?”

To do this, we would allow an arbitrage bot to execute taxless transactions. This will give the bot a significant advantage over any other arbitrage bot and increase the likelihood that the Pawthereum bot will have first dibs on the arbitrage opportunity. There is already a service that provides bots to do this exact strategy (they take a 10% cut of the profits and pay the gas which seems very reasonable). The profits are made in the form of XUSD (a stable coin built by the service that created the bot).

The pros: Profits from arbitrage opportunities go to the Pawthereum Dev Wallet instead of a random arbitrage bot to be used for operational costs, listings, marketing, etc. as the core team sees fit.

The cons: This could be seen as an unfair advantage against other arbitrage bots Due to this being a taxless transaction, reflections would not be produced in an arbitrage transaction

Ratification of this vote would apply to BSC in the short term and ETH in the long term (possibly CEX’s in the distant future).

Vote “Yes” if you are in favor of Pawthereum running a taxless arbitrage bot. Vote “No” if you are not in favor of Pawthereum running a taxless arbitrage bot.

Full disclosure: To ensure that this possibility could actually function, this bot is already running on mainnet and has been proven to work (at the time of this vote, the bot has profited ~$8). A vote of “no” would result in the project shutting down the bot. (Sample transaction: https://bscscan.com/tx/0x2b6668b1ec0e34e858a5e89b2482a57edb318ed66e71d73211d9348c5a0ac42d)