> For the complete documentation index, see [llms.txt](https://docs.virtue.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.virtue.money/arbitrage-opportunities.md).

# Arbitrage Opportunities

Virtue’s architecture creates several avenues for low-risk arbitrage, particularly using Flash Minted VUSD and cross-chain price spreads.

A. Stability Pool Arbitrage

If the Stability Pool lacks sufficient VUSD during liquidation, users can:

* Flash Mint VUSD
* Deposit into the Stability pool to trigger liquidations
* Receive underpriced collateral
* Swap it back to VUSD
* Repay the mint and keep the arbitrage gain

This rewards participants for supporting system health and provides decentralized liquidation coverage.

<br>

B. Cross-Chain Arbitrage (Mainnet → IOTA EVM)

Due to price differences across chains, VUSD may trade below $1 on IOTA Mainnet. In this case:

1. Buy discounted VUSD on a DEX (e.g., 0.97)
2. Bridge VUSD to IOTA EVM using the native IOTA cross-chain bridge
3. Swap VUSD → USDC.E via a DEX on IOTA EVM
4. Profit from the price gap (e.g., 1.00 vs. 0.97)

These opportunities encourage active market participants to enforce the peg and ensure liquidity across environments.


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