2.0 stETH Peg

The chart below visualizes the hourly peg of stETH since Jan 2022. On May 3rd, it began to fall off its ETH peg and hasn't recovered since. it went as low as 0.937 stETH/ETH.

2.1 stETH to ETH

The pie chart shows the number of address that has profited or loss from the stETH to ETH swaps. About 256 address managed to rake profit from the swaps.

The table below shows the Top 5 address that gets ETH profits from swaps. the highest is at a staggering 274.86 ETH profit.

The Table below shows the top 5 address that profited from STH to stETH swaps (in terms of redeemable ETH). We can see hat these adress are the same address that profited from stETH to ETH swaps.

2.2 ETH to stETH

The pie chart below shows the distribution of address that profited and loss from swapping ETH to stETH. Majority of address has profited from acquiring stETH via swaps as they camn reddem more ETH from stETH. This don't include expense on gas.

1.0 Introduction

Beginning early May 2022, stETH depegs from its ETH peg and still has not recovered. This offers opportunity for users to rake profit from arb trading via swaps by capitalizing the depegs . One of the way is to buy stETH for cheap and redeem it later after The Merge. The other way is exploiting the depeg via trading.

3.0 Conclusion

From the study, it is found several address has made significant amount of profits from swapping. There are much more address that has made profit from swapping ETH to stETh but thi is subject to change due to stETH peg.

2.3 Arb strategy

In order to capitalize the most amount fom stETH/ETH trades is to compare the swaps outcome against the stETH peg. When trading stETH to ETH, the below formula shold be used, to calculate the claimable ETH.

From this, if the formula yields higher Output than swap Output, Swaps stETH to ETh. Otherwise swap ETH for stETH