Why the "spread"in the index.js need subtract 0.6 ？ about uni-sushi-flashloaner

[hauzlife]

"I'm not involved with this project at all, but My guess is that the -0,6 comes from the UniSwap and SushiSwap fees (0.3% each). So we want the profit spread to be more than 0.6%.

Jackson"

Maybe?

#1 (comment)

[xale76]

I really don't understand this:

const spread = Math.abs((priceSushiswap / priceUniswap - 1) * 100) - 0.6;

  const shouldTrade = spread > (
    (shouldStartEth ? ETH_TRADE : DAI_TRADE)
     / Number(
       ethers.utils.formatEther(uniswapReserves[shouldStartEth ? 1 : 0]),
     ));

1. spread is in percentage, right?
2. why in shouldTrade formula, we divide ETH_TRADE for DAI reserves (if shouldStartEth is true) and we divide DAI_TRADE for ETH reserve elsewhere?

please help

[frankandrobot]

@xale76 had the same question as well.... not sure what the relationship between spread and the calculation. It seems that we should trade if the ratio of the ETH_TRADE (or DAI_TRADE) in to the reserve in uniswap is less than the spread. But then that spread comparison seems arbitrary.

• so spread = ratio of price difference
• should trade = ratio of price difference > ratio of ETH_TRADE / uniswap ETH reserve

yea, i guess i'm not seeing this connection.