In the ecosystem of a leading DeFi protocol, there exists a profitable yet little-known strategy—price arbitrage targeting its USD stablecoin. n nOn the surface, this stablecoin is pegged to $1, and theoretically should remain rock solid. However, under extreme market sentiment, it can experience subtle fluctuations. During market panic, lenders focus on repaying loans, causing the coin price to spike to 1.02; during market euphoria, lenders rush to cash out, causing the price to drop to 0.98. n nFor retail investors, this is just noise, but for savvy participants, it presents an arbitrage opportunity. The protocol’s PSM price stabilization module is cleverly designed: buy in the secondary market when below $1 and redeem at $1; mint and sell at market price when above $1. This operational logic is akin to on-chain foreign exchange trading, only the counterparties shift from institutions to emotion-driven markets. n nInterestingly, this arbitrage not only allows participants to profit from the spread but also helps the protocol maintain its price peg, creating a positive feedback loop. As the ecosystem develops and liquidity pools deepen, the profit margin per arbitrage narrows, but the scale of funds involved continues to grow. This makes it an ideal tool for large capital to perform low-risk liquidity management.