# 🙋🏿♂️ Example: Adam and the Arbitrage

An example for Arbitrage

tenXXX Tokens will start with three Liquidity Pools. More will be following later.

Because of the pegged price the real price of a tenXXX Token will be ~1:1 to the price of the underlying token. It is the same relation WBTC has with BTC.

1 BTC = 1 WBTC (orange line) doesn't matter what the price does (blue line)

If the price rises in one pool e.g. the BUSD/BTC pool, the ETH/BTC pool also has to follow. This happens with arbitrage. But the WBTC:BTC price stays at 1:1.

ETH price for WBTC (red line) also pumps when BTC pumps

**10:00 a.m.:**BTC price - $ 40,000 and 15 ETH

**10:30 a. m.:**BTC dumps 40% in 30 minutes (we know that days right ;) ). BTC pice - $ 24,000 and 9 ETH

**That means that the tenBTC price has to follow because you get ~1 tenBTC for 1 BTC at the automated market maker. It is the hour of Adam. Adam**

**LOVES**to arbitrage. He buys BTC with his BUSD, then tenBTC with his BTC and sells them at the tenBTC/BUSD DEX Pools. That means he bought in at $ 24,000 and sell at $ 40,000 to the pools with the old price. For an easier calculation: Let's say he does this with 1 BTC. He bought for $ 24,000 and sells on $ 40,000 => $ 16,000 profit minus 2x ~1.2% transaction fee =>

**total win: $ 15,488**On this trade the tenBTC holder earned ~ $ 875.16 (thats meant by win-win(-win) situation).

The same thing has to happen to all pools on the DEXs (not only tenBTC:BUSD also tenBTC:ETH, tenBTC:LINK, tenBTC:...)