# On-chain primary markets

Reward-bearing tokens like cbETH, rETH, and wstETH often trade at a premium due to their yield-accruing nature. The introduction of staking DTPs on-chain creates new arbitrage opportunities for market makers, with primary market trading offering the most lucrative arbitrage potential.

If a staking DTP is trading **below** the price of a CEX, a trader can:

1. Buy the DTP off of Uniswap using USDC
2. Withdraw the DTP for 1:1 bitcoins + rewards
3. Sell Bitcoin for USDC
4. Profit

If a staking DTP is trading **above** the price of a CEX, a trader can:

1. Mint DTP using Bitcoin Remap (bitcoin remains in control of solo staker)
2. Sell DTP on Uniswap for USDC
3. Profit

{% hint style="info" %}
You'll notice it is beneficial for market makers to keep some staking remaps deployed as it creates **leveraged arbitrage** opportunities. For example, if bitcoin minted as a DTP is still non-custodial, the USDC profit is a leveraged trade. The same remaps can be used to execute a withdraw when it is profitable to buy DTP and withdraw.
{% endhint %}

The trade becomes even more profitable when you introduce lending markets in the arbitrage.

If a staking DTP is trading **above** the price of an external market, a trader can:

1. Borrow DTP depositing USDC as collateral
2. Sell DTP to a Uniswap pool for USDC at a premium (profit)
3. Mint DTP by depositing Bitcoin
4. Repay borrowed DTP withdrawing USDC

If a staking DTP is trading below the price of an external market, a trader can:

1. Borrow DTP depositing USDC as collateral
2. Buy cheap DTP from Uniswap pool using USDC
3. Repay borrowed DTP 
4. Profit

### What happens in a black swan event?

Since there is no centralized exit queue, everyone can independently unstake and withdraw their Bitcoin during a black swan event.


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