Part 7/13:
The platform’s moat—especially on cross-chain pairs—is rooted in its ability to execute arbitrages faster or more efficiently than competitors, thanks to optimized fee structures. For instance, if the bridge fee for transcoding tokens is 1.5%, Leo Strategy aims to have a whitelist fee of around 1%, creating an arbitrage window of approximately 0.5%. Such margins enable the platform to perform profitable trades repeatedly.
This arbitrage not only yields immediate profits but also acts as a form of “volatility harvesting,” turning market fluctuations into growth for the strategy’s asset pool. As more volume flows through these pairs—potentially reaching a goal of one million dollars daily in trading—they generate increasing arbitrage opportunities, fueling the flywheel effect.