What's Smart Arbitrage bot and how do I use it?

Published on Aug 22, 2024Updated on Jun 5, 20258 min read80

What's Smart arbitrage bot?

A Smart arbitrage strategy is a crafted strategy to protect against market price fluctuations. The cornerstone of this approach is the Delta-neutral strategy, which involves holding equal and opposite positions in both the spot market and the perpetual swap market. This balanced approach ensures that price movements in either direction are neutralized.

In practice, this strategy entails purchasing a crypto in the spot market (going long) while simultaneously selling the equivalent amount in the perpetual swap market (going short). This dual positioning can effectively cancel out potential gains or losses from price swings, thereby significantly mitigating risk. The primary profit is derived from collecting funding fees during the holding period, particularly when the funding rate is positive.

With the enhancement to its functionality, accessibility, and overall user experience, the bot will continue to automate profit generation through funding fee differentials, while the updated version will be designed to be more intuitive and user-friendly. This makes it a great tool for traders of all experience levels, from beginners to seasoned professionals.

Why should I use Smart arbitrage bot?

  • Delta-neutral strategy:

    • Reduces risks associated with market fluctuations.

    • Minimizes the impact of price changes on trading positions.

    • Focuses on earning from funding fee differences rather than relying on market direction.

  • Risk management:

    • Keeps a delta-neutral position, enhancing stability in volatile markets.

    • Allows traders to manage risks effectively while pursuing higher returns.

  • Maximize potential for market opportunities:

    • Designed for traders aiming to maximize profits in the crypto market.

    • Highly competitive in bearish or sideways markets, often outperforming traditional investments like Simple Earn. This is due to lower demand for USDT loans and reduced funding rates, which allow for higher returns through the strategic exploitation of funding fee differences.

What trading modes are available?

  • Custom Mode: users can pick strategies with high annual returns based on their own research and set their own profit targets.

  • Smart Mode: the system automatically suggests the best strategy for the user and manages take-profit, stop-loss, and position adjustments intelligently.

How do I use Smart arbitrage bot?

  1. Load your app/web version, and select Trade > Trading bots from the pop-up menu

  2. Once the Trading bots page is opened, head over to the list of bots menu and select Smart arbitrage under the Sideways option

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    Select Smart arbitrage as your Trading bots mode

  3. A 3-page combo of mini explanations on Smart arbitrage appears, select Next to proceed

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    Get to know more about the smart arbitrage trading bot before proceeding to the trading phase

  4. Toggle your options from Custom to Smart mode before selecting your preferred crypto

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    Switch to your preferred modes and select your crypto

  5. View all the crucial details, from the expected APY to Funding rate and basis rate, which can be set by selecting on the chart to load the details

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    Go through important details such as the Expected arbitrage APY to set your investment according to your preference

  6. Fill in your investment amount at the Investment amount option once you're ready to trade
    Note: if you have insufficient balance, you can top up by selecting the '+' option beside your current balance.

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    Insert your investment amount or add to your available amount via several deposit methods

  7. Once all set, select Create to proceed to the next phase

  8. A new pop-up will appear with the investment details before you proceed to the Order Confirmation page, select Confirm to proceed

  9. Now that the trade is successful, there'll be a page with the option to select Check the details or Explore more strategies

How do I stake with Smart Arbitrage?

What's staking?

Staking crypto is the process of locking up your cryptocurrency in a blockchain network to help support the operation and security of that network — and in return, you earn rewards.Rewards from staking often come in the form of more of the same crypto, earned over time based on your contribution to the network. These rewards accumulate gradually while your assets remain staked. With Smart Arbitrage, you can stake in Ethereum or Solana:

  • Staking on Ethereum: when you stake ETH by delegating it to validators on the Ethereum network, you’ll receive an equivalent amount of BETH, which automatically starts earning daily BETH rewards and the details are as below:

    • Rewards begin the next day after subscription.

    • If you subscribe after 16:00 UTC, your first reward will arrive in 2 days.

    • Rewards are distributed daily and credited to your strategy account.

  • Staking on Solana: by staking SOL and delegating it to validators on the Solana network, you'll receive OKSOL, which earns additional OKSOL rewards and the details are as below:

    • Subscriptions made before 03:00 UTC go on-chain the same day.

    • Subscriptions made after 03:00 UTC go on-chain the next day.

    • Rewards are distributed every 3 days.

What's the upgraded Smart Arbitrage bot staking?

Our Smart Arbitrage Bot just got an upgrade — now with integrated staking for even more earning potential.

In addition to automating one-click arbitrage trades to capture price differences across markets, the bot now allows users to compound returns by staking their funds on Ethereum or Solana networks.

This dual-earning strategy means you benefit from:

  • Market arbitrage profits through smart, automated trades

  • Staking rewards from helping secure blockchain networks

All of this happens behind the scenes in a fully automated, user-friendly experience — making your crypto work smarter, not harder.

How do I create Smart Arbitrage bot strategy with staking rewards?

  1. Head over to the Trading bots page

  2. Select Smart Arbitrage

  3. Choose a strategy labeled with staking rewards (for example, SOL Smart Arbitrage or ETH Smart Arbitrage)

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    Select the arbitrage bot strategy for either SOL or ETH

  4. Enter your investment amount
    Note: staking rewards are enabled by default — simply leave the checkbox selected.

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    Key in necessary details such as the investment amount and enable the OKSOL staking

  5. Select Create Strategy to activate

  6. Once you've activated the strategy, confirm the investment amount

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    Confirm the investment amount

How do I view my earnings?

  1. Go to the strategy details page

  2. You’ll see a breakdown of both arbitrage and staking rewards (if staking is enabled).
    Note:

    • ETH staking rewards are distributed daily.

    • SOL staking rewards are distributed every 3 days.

If you stop the strategy before the next reward cycle, pending staking rewards will be credited to your funding account.

How do I stop the strategy?

  1. Select Stop to exit the strategy. You’ll have two options:

  • Keep my spot assets: your assets will return to your trading account, and BETH or OKSOL will continue earning staking rewards.

  • Sell my spot assets: your assets will be sold, and staking rewards will stop.

To learn more about other available Trading bots, visit here.