🔄 Arbitrage Opportunities

Trading arbitrage opportunities exist for Rekt Frens due to the price relationship between the FRENS ERC-20 tokens and the NFTs.

The ERC-721 NFTs minted are the fractionalized representation of the ERC-20 tokens at a 1:1 ratio. However, if a trader buys 100 FRENS at the floor price, there is a chance a rare Rekt Fren NFT trait, like a pirate hat, gets minted.

While the floor price of the NFT collection may match 1 FRENS token due to the fractionalization, this rare NFT could be sold for 50-100X that amount.

Traders can capitalize on buying cheap FRENS, minting the coupled NFTs which potentially contain rare attributes, and selling valuable Rekt Frens NFTs back on the marketplace for a profit.

The treasury benefits from the trading fees to facilitate further ecosystem development. 1% of all trades goes to the treasury, regardless of whether transacting FRENS tokens or mirrored Rekt Fren NFTs.

This two-way interplay between fractionalized tokens and NFTs opens up unique arbitrage opportunities. Active traders help discover proper valuations for assets while bolstering treasury holdings for the community's benefit as a whole.