[Revenue Model] What is SPMA?
SPMA stands for Smart Pig Mining Algorithm, which is a trading algorithm developed jointly by DLP Foundation and Smart Pig Co., Ltd. over several years, designed to maximize profits through liquidity provision and arbitrage trading in highly volatile markets such as virtual assets.
Liquidity Provision with SPMA
- Buy execution — Green arrow
- Sell execution — Red arrow
SPMA generates profits by repeatedly trading within the predetermined algorithm.
Arbitrage Trading with SPMA
Arbitrage trading refers to a strategy that takes advantage of price differences in the same product in different markets to generate profits without risks. SPMA has been consistently generating profits over several years with its arbitrage trading algorithm.
*Please refer to the whitepaper for more details.
Trading, which involves buying low and selling high, is not as easy as it sounds, especially when emotions come into play, increasing the risks.
In particular, the cryptocurrency market has high price volatility 24/7, which can result in high returns, but also inevitable losses.
SPMA is designed to minimize human intervention and achieve consistent accumulation of profits through more stable and conservative trading based on the predetermined algorithm, capturing these aspects.
In the medium to long term, considering various opportunity costs, it is expected that the approach described above will yield much higher returns than aggressive trading.
Furthermore, it is expected that this stable and maximized profit generation with SPMA will contribute to the success of the DLP project.
Today, we learned about SPMA. Doesn’t it seem like a goose laying golden eggs?
However, it is important to remember that there are always risks of sudden market downturns in the cryptocurrency market, as seen in the FTX incident. Therefore, I would like to emphasize that we should not forget about these risks when considering investments.
Therefore, we always recommend investing with discretionary funds rather than risking excessive amounts in this market.