Someone netted 40K in a few minutes by exploiting a price discrepancy in stable coin.

I find arbitrage in stable coin genius because the risk is so low - what could be less riskier than something that literally tries to peg itself to fiat 1:1? Anyways, the idea is not that hard, which is to look for price when the stable veers away from 1.00. Also important to look for one with high enough liquidity. I found this article here source a very fascinating read - in summary this is what happen.

Basically someone started out with 45K USDC and then borrowed another 400K. Then setup a bot to look for temporary differences in UST from 1 dollar. When the opportunity arose the trader then used Uniswap to exchange 450 USDC for 492 USDT, instantly netting 42 K. When it it eventually dropped back to 1.00 which he/she then swapped back to USDC. The total transaction fee was only 2K, netting 40K, not bad for a day of work.

This story was written up here. source. In the article they also showed the transaction details detailing exactly each of the transactions. incidentally is another reason why blockchains are great because all records can be easily observed.

Importantly this was completely legal and was not unethical because the trader only took advantage of the price difference which is similar to buying low at one place and selling it somewhere else for a higher price. Arbitrage is standard practice only in this instant its done with stable.

edit: had this been a flash loan then the person would not even need to start out with 40K since the loan would only execute in real time if the the contracts are filled. In other word he/she did not even have to hold any collateral to start with. Also less riskier since the loan would only go through if the contracts were filled. Neat.

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