The Fantastical Finance Factory

Solana's very own Perpetual Motion Machine - backed by @Colosseum.

[The Fantastical Finance Factory @fffactoryhq]

Dr. Fraudsworths' Fantastical Finance Factory is now open source!

All of our programs have been verified on chain to match the code in the public repo. This can be checked yourself by looking on any solana explorer.

We're doing CRIME the moral way.

https://t.co/hDMltP7T7s

[mlbob @MetalLegBob]

A note from the @fffactoryhq V2 roll out.

This is the first time (I think) where the arbitrage bot triggered due to external price movements (HYPE losing price against SOL) rather than the times it triggered this morning which was due to testing (I seeded the pools at the wrong prices in USD terms to trigger the bot intentionally) + trading volume.

Hype dropped in price against SOL (only a small amount, like ~0.3%) and this threw the pools out of sync. The arb bot immediately corrected this and profited roughly $1.10 total which went back into the liquidity pools.

Yes this is a tiny amount in $ terms because it was a tiny move in % terms - but that's not the point. The point is that nothing internally had to happen for this to work.

Markets never stop moving and so we won't ever stop profiting from them. It's also worth noting that this scales with TVL. The bigger our pools, the bigger the arbs.

One other thing of note in regards to the size of the arb profit is that volatility harvesting doesn't scale linearly.

That 0.3% move netted ~$1.10 in profit.

A 3% move (10x) would net ~$20 in profit (18x).

A 10% move (33x) would net $145 in profit (130x).

This will matter a lot when we start opening pools for lower cap/more volatile tokens.

[Colosseum @colosseum]

V2 of The Fantastical Finance Factory has begun to rollout.

[nftimm | thesyndicate.games @nftimm]

So some pretty crazy stuff is happening with @fffactoryhq.

Last night they sent multi-pools live (HYPE, USDC AND SOL) which means there are now even more routes to arb against in the $PROFIT ecosystem.

And the numbers already are massive 👀 bearing in mind this is with very low volume, where the only place you can currently buy if the website. (JUP routing coming in the next few weeks).

Across 25 audited cycles, we measured approximately $887 equivalent of additional liquidity depth: around $734 from liquidity deposits and $153 from retained swap fees.

The opportunities are particularly large right now because routing across the pools still leaves price gaps. Better routing should improve execution for traders and reduce those gaps, so I wouldn’t extrapolate these early numbers into a daily yield. But it's a good kick start lol.

But this shows why having our own arb matters: the bot reinvests its trading profits into our pools. An outside arbitrageur would typically keep that profit. Look at a coin like robinhood:0xab093def657f15df31b33922a95e047add645b29 - it had atrociously bad routing, AND no in house arb bot.
So all of that value leak was going to arb bots rather than to the protocol.

There’s still routing work to do, but the mechanism is working: capturing price differences, returning the proceeds, and building deeper liquidity for the factory.

Factory on top 👀 genuine perpetual motion.

FYI sitting at less than $2m mcap where ATH is $9m+ and these next few weeks going to get very tasty.

Page is back live: https://t.co/xAghLMOGjf

[The Fantastical Finance Factory @fffactoryhq]

@WolfFrogs @CryoPalmar Yes.

[mlbob @MetalLegBob]

Extremely proud of how this has been rolled out so far.

From now, even if no one ever buys or sells the $PROFIT token ever again, the supply will continue to deflate and the liquidity will continue to get deeper.

Perpetual.

Motherfucking.

Motion.

[The Fantastical Finance Factory @fffactoryhq]

For now (but not much longer), you can still only purchase PROFIT via our website:

https://t.co/HOOhXI1xpQ

So much more to come.

The machine never turns off. 🧪

[The Fantastical Finance Factory @fffactoryhq]

It's taken some tinkering.. but Perpetual Motion has been achieved! V2 of The Factory has begun to roll out.

TLDR:

- We are now multi-pool. New pools quoted against HYPE and USDC are live, with more coming soon.

- Internal arbitrage is running. The protocol now arbitrages its own pools and accrues the profits back into the pools.

Read on for more info!

[The Fantastical Finance Factory @fffactoryhq]

We now have our own internal arbitrage bot.

This bot does NOT pay taxes like everyone else, allowing it to trigger inside the tax band before any other arbitrage bot is profitable. This removes any race and stops the arbitrage profit reducing due to priority fees.

The bot is programmed to fire whenever a spread between pools gets larger than (tax friction - 50bps), and then reduces the spread to (tax friction - 50bps).

For example, if current tax friction is 6% (2% buy tax, 2% sell tax & 2x1% AMM fee), then the bot will trigger whenever the spread gets larger than 5.5% and reduce it back to that point.

The profits from each arbitrage are then used to either buyback/burn tokens, or to add double sided liquidity to the two arbitraged pools.

The disposal choice is decided on weekly by stakers of PROFIT.

[Cryo Palmar @CryoPalmar]

The next version of @fffactoryhq, visualised

Insane tech, perpetual financial motion 🔥

[The Fantastical Finance Factory @fffactoryhq]

One promise.

As long as markets move, the factory makes money.

Forever.

[mattytay @mattytay]

Really excited about @colosseum's newest accelerator batch.

Yesterday, we hosted our IRL Demo Day and many of the products are already generating significant revenue/volume.

Worth following and chatting with these teams if you're looking to seed invest in the next wave of breakout crypto startups:

@crowdbrainai
@cesto_co
@Peakstrade
@my_mana_
@traded_gg
@flovia402
@Senthosxyz
@__Dropset__
@PlayWLS
@rwaodl
@housddotfinance
@JKIndex_
@fraudsworth
@clawpumptech
@Rosentica
@myStableCorp
@SyndicateGameHQ
@DashXHQ
@NomuStores
@LasoFinance
@zonelessdev

[Colosseum @colosseum]

Tomorrow.

[mlbob @MetalLegBob]

Updated the simulation site to allow people to visualise how the arbitrage works between all the different assets as they fluctuate.

[The Fantastical Finance Factory @fffactoryhq]

69 is funny but 7 is the lucky number

[SolanaNews.sol @solananew]

🚨BREAKING: SOLANA STAKING JUST HIT 68.88% — NOW ONLY 0.12% AWAY FROM 69% OF ALL SOL BEING STAKED!!! 🚨

[mlbob @MetalLegBob]

A simulated basket of assets with a $20k total value would have generated ~$72 in the last 39hrs just from market volatility.

@fraudsworth currently has roughly 12x that value in its liquidity pools, which would have meant ~$840 worth of revenue generated towards buyback/burn or increasing liquidity depth.

All whilst no one had to do anything. No product had to be used, no one had to buy or sell. Just a machine running on markets moving around it.

Perpetual motherfucking motion.

Soon.

[mlbob @MetalLegBob]

quick reminder

[Colosseum @colosseum]

1/ The agenda and presenting order for Colosseum's Accelerator Demo Day next week.

Cohort V was our largest and highest-velocity batch yet. To get an invite to the IRL event, apply below.

https://t.co/VlRHJzmWvf

[mlbob @MetalLegBob]

Can you get any more @fraudsworth coded?

[mlbob @MetalLegBob]

https://t.co/zNnBNojVRX