Arbitrage Mechanics
Price Discrepancies Because Polymarket is dominated by crypto-natives and Kalshi by US institutional traders, they often value risks differently.
Scenario: Polymarket traders (global) believe there is a 60% chance of a specific regulation passing. Kalshi traders (US based) believe it is only 55%.
The Arbitrage Loop FaaSFi exploits this inefficiency to benefit the platform and its users:
Identify: The engine detects the 5% spread.
Capture: The protocol can buy "Yes" on Kalshi (55c) and sell "Yes" (or buy "No") on Polymarket (60c).
Yield Generation: This risk-free profit is collected by the FaaSFi Treasury.
Subsidy: We use this revenue to subsidize the premium costs for our corporate OBCD clients, effectively making FaaSFi the cheapest place to buy risk protection.
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