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all those trades follow the relative USD price of each asset.

if they deviate from that ratio (and they do sometimes) a million bots jump into the arbitrage opportunity for free fiat.

and push the price back towards the equation above.

that's what USD being the Unit of Account and "most saleable asset" means.

Comte de Sats Germain 11mo ago

That's irrelevant. Millions of bots do that to every conceivable trading pair. They exploit differences in the pairs offered on different exchanges, not anything fundamental to assets

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Hanshan 11mo ago

correct

market actions always push the trading pair back toward the relative UoA denominated prices.

(X/USD)÷(Y/USD)

fiat denominated.

ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ 11mo ago

i almost took a commission to build an arbitrage bot like you describe... it's not difficult to do given an adequate decision of the conditions for execution and the sizing parameters