

Stable coin arbitrage annualized by 20% and earn passive income using the BUSD and TUSD spreads
Jul 08, 2025 pm 07:15 PMThis article will focus on the theme of stablecoin arbitrage and explain in detail how to use the possible price spreads between stablecoins such as BUSD and TUSD to obtain profits. The article will first introduce the basic principles of stablecoin spread arbitrage, and then introduce the specific operating procedures through step-by-step explanations, and analyze the risks involved and matters that need to be paid attention to, helping users understand this process and realize that its returns are not stable and unchanging.
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What is stablecoin spread arbitrage
Stable coins, such as BUSD and TUSD, are designed to be 1:1 anchored with fiat currencies such as the US dollar. However, in actual market transactions, due to various factors such as supply and demand, capital liquidity, and market sentiment, the price will fluctuate slightly around USD 1. When price differences occur between different stablecoins, such as the BUSD price is $0.99 and the TUSD price is $1.01, arbitrage space is created. The core of spread arbitrage is to use the slight price difference between different stablecoins to buy low and sell high , so as to earn the spread when the price returns to balance. This process needs to be performed quickly, as such spreads usually last very short.
Analysis of arbitrage operation steps
To arbitrage through the BUSD and TUSD spread, you can usually follow the following steps:
1. Monitor prices: Use trading platforms or market analysis tools to track the prices of BUSD and TUSD exchanged for other major assets (such as USDT or USD) in real time. The key is to find that there is a price difference between the two that is enough to cover transaction costs .
2. Execute buying: Once the price difference is found, for example, the price of BUSD is less than USD and the price of TUSD is more than USD, immediately buy the low-priced BUSD on the trading platform.
3. Execute sell/redeem: quickly exchange the purchased BUSD into the TUSD with a high price. This may need to be done with an intermediate stablecoin (such as USDT), i.e. "Buy BUSD -> Exchange to USDT -> and exchange USDT for TUSD".
4. Calculate the income: After completing the transaction, you will hold more TUSDs than the initial investment in equivalent assets. Profit is the final asset value minus the initial cost, and then deduct all transaction fees and possible withdrawal fees.
Risks and precautions
Although arbitrage sounds simple, there are some risks in practice. First of all, the market price changes rapidly, and the price difference may have disappeared or even reversed during the process of completing the transaction, resulting in losses. Secondly, the arbitrage space is usually very small, and the transaction fee is a key cost that must be calculated . If the fee is higher than the price difference, you cannot make a profit. Therefore, it is crucial to choose a trading platform with low rates. Finally, the title mentions "annualized 20%" is a very ideal number. In reality, the opportunity for stablecoin spread arbitrage does not persist, and the profit is meager. It is extremely challenging to achieve an annualized rate of return of 20%, and is not a stable guarantee . It is recommended to fully understand the rules and costs of the relevant platforms before operation.
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