Trading Locked Liquidity

Trading locked liquidity is a new way to arbitrage value in order to generate rapid returns. It entails the purchase of illiquid assets with the intention of immediately reselling them at a higher price.

Use-case example:

Jim wishes to take advantage of the opportunities provided by the Drops Marketplace, but does not own any locked liquidity and does not plan on holding Ethereum for a long time. Jim decides he will become a locked liquidity trader. Jim browses the platform’s listings, and finds a pool with 5 Ethereum and a 6 month lock being sold for 75 DROPS (worth 3 Ethereum). Jim, seeing an opportunity for profit, buys the pool for 75 DROPS and immediately lists it at 100 DROPS (worth 4 Ethereum in this example).

Another buyer purchases the pool from Jim. Jim has just made 25 DROPS (worth 1 Ethereum) in profit.