We're excited to announce the launch of our new SNX arbitrage contract that allows people to exchange ETH for SNX to support the sETH/ETH peg. The launch comes after a trial that ran manually for several weeks.
If the sETH/ETH rate on Uniswap falls below 99/100, people can send ETH to the arb contract, which is then converted to SNX at par value. Essentially this means if the sETH ratio falls too low you can use this to exchange ETH to SNX at a discounted rate.
EDIT: we have updated the address of the arb contract (October 2, 2019).
- Allows a user to send ETH to the contract if:
a) the sETH/ETH ratio is below 99/100, &
b) there is sufficient SNX remaining in the contract at the current exchange rate
- Converts the ETH to sETH via Uniswap until it reaches the 99/100 ratio or until the ETH is exhausted
- Converts the sETH to SNX at the current exchange rate
- Sends the SNX to the wallet that sent the ETH
To interact with the contract, use the link and connect with Metamask, press 'Write Contract,' use the 'arbSynthRate' function and enter how much ETH you're sending.
5% of the weekly SNX rewards will be added to the contract. In the first year of this monetary policy, this equates to 70,000 SNX weekly.
If you are attempting to use the contract but the transaction is failing, it is possible that all of the available SNX has already been drained.
If you've got any further questions about how it works, come join us in Discord!