Earlier someone said that everything in the world can be explained with “arbitrage”—and they really are right
In the eyes of arbitrageurs
➡️ The emergence of multiple CEXs means there are opportunities for arbitrage between different CEXs in terms of price, fees, activities, even VIP status
➡️ The appearance of DEX Perps is all about the trading opportunities—arbitraging the price differences and so on—between CEXs and DEX Perps
➡️ The emergence of RWA tokens, stock-like assets, and so on is precisely the kind of arbitrage between the real world and Crypto
Everyone should know this process already—I'll briefly explain this arbitrage
The core of this arbitrage is to use
The price difference between FOUR’s 4Stock minting mechanism and the premium created by on-chain meme speculation
BNC is a U.S.-listed company, CEA Industries (Nasdaq: BNC), which has transformed into a company acting as a “BNB vault.”
FOUR launched the 4Stock product, allowing U.S. stocks that don’t yet have an official bStock to be onboarded on-chain in a form backed 1:1 by assets. The first one is BNC4
At the time, on-chain BNC4 was being pushed up to about $30–$35 due to the Stock Meme hype, while the after-hours price of the underlying stock was only about $4.1–$4.2, creating a 7–8x premium. Arbitrageurs mint BNC4 at prices close to the underlying stock cost and then sell it off immediately on the DEX
The specific process is as follows:
Discover and confirm the price spread
Observe
The real-time execution price of BNC4 on FOUR / PancakeSwap, compared with the BNC after-hours quote in the U.S. stock market. When the on-chain price is far higher than the underlying stock price, there is an arbitrage opportunity
Submit a minting request (minimum 10,000 USDC)
Using the same wallet that will receive the BNC4, transfer USDC to
FOUR specifies the address 0x2929a9b06b8d625aed46237cf6d1d318f9e3bb7b, and then fill in the transaction hash into the official Google form. The platform processes requests in the order received
The platform buys the shares and coins the tokens 1:1
FOUR uses the received USDC (minus a 1% minting fee) to buy real BNC stock, then mints BNC4 1:1 based on the actual number of shares purchased, and sends it to the applicant’s wallet. In normal circumstances it completes within 24 hours; when market volatility is high, the minting amount may be adjusted according to the actual executed price, so it may not equal the number you estimated
Sell on-chain immediately
After getting BNC4, immediately sell it on the BNB Chain DEX
The screenshot shows 6,666 BNC4 exchanged for about 231,340 USDT, corresponding to a sell price of roughly $34–$35 at the time. If the minting cost is around just over $4 for the underlying stock plus fees, then investing about $30,000 USDT would let you get around 230,000 USDT
This is not risk-free arbitrage
Key risks include: platform processing speed (the first batch, so faster), changes in the underlying stock price during the minting period, DEX slippage, and the rapid disappearance of the premium once a large number of newly minted BNC4 enter the market. In practice, after BNC4 surged to $35, it crashed by about 85% within a few hours, falling back to around $4.7, near the underlying stock level
