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Be wary of falling into the whale's 'arbitrage trap', 8 iron laws that Blur Farmer should remember.

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Remember: Bidding above the floor price is an invalid strategy.

Original Title: "8 Suggestions for Blur Farmer to Face Whale Arbitrage"

Original Author: Shi Wen, Odaily Star Daily

Twitter KOL @Liam Herbst recently noticed a cleaning transaction and arbitrage pattern targeting NFTs. If you are depositing ETH into Blur and preparing to earn points through Bid as a Blur Farmer, it is important to understand this arbitrage method and follow the following 8 recommendations to avoid falling into the "arbitrage trap" of whales:

Avoid NFTs with sudden price surges or drops.

Before depositing ETH, check your previous Bid.

Before the launch of NFT, please carefully understand the various information about NFT.

Don't slip!

Monitor low Bid prices.

Bid prices should not exceed the floor price.

Be wary of collectibles that require royalties to be paid.

Track the TVL of Blur.

Here is the specific content shared by @Liam Herbst in the tweet, compiled and translated by Odaily Star Daily.

1. Avoiding NFTs with sudden price surges or drops

When whales actively bid for NFT collections, the floor price of a certain NFT will be briefly raised, and other bidders will also join the bid, causing the floor price of the NFT to continue to rise. Then, the whales will sell the NFTs they purchased at the appropriate time to these bidding competitors. The result is that the whales make huge profits from arbitrage, while the bidders are left with empty wallets. For example, a certain account lost 50 ETH due to this arbitrage method.

面对巨鲸套利，Blur Farmer 应遵循的 8 条建议

In addition, bidders such as Cool Cats and Art Gobblers have also lost their ETH due to the sudden rise and fall, and there are countless examples of such. Therefore, it is recommended to stay away from NFT collections with sudden price spikes and "flip" transactions between wallets.

面对巨鲸套利，Blur Farmer 应遵循的 8 条建议

2. Check your previous Bid before depositing ETH

If the ETH balance in your account is lower than the Bid price, Blur's Bid mode will be disabled. If you add enough ETH back to your account, the trade will be reactivated. What problems could this cause? Let's take a look:

Firstly, you have a deactivated Bid.

Next, the floor price of a certain NFT collectible has dropped.

At this point, you have deposited more ETH into your account. With sufficient funds in your account, your previous Bid transaction is reactivated, but at this time, the NFT floor price has already dropped. Therefore, during this process, you purchased the NFT at a price higher than the floor price.

3. Before launching on NFT, please carefully understand the various information about NFT.

Before bidding, please carefully review the various information of the NFT to see if it is rare, and check if there are offers on OpenSea that are higher than the Blur floor price. After comprehensive evaluation, then give an appropriate bid.

4. Don't slip!

If you bid more, you are more likely to make mistakes at some point. The seamless bidding experience of Blur is very helpful in improving efficiency, but speeding up the process can also reduce the time you spend checking for errors. Even some of the best traders are prone to this mistake. For example, NFT OG Franklin accidentally bid 35 ETH on Beanz with a floor price of 1.73 ETH due to a slip of the hand, and the transaction was accepted before he could cancel it.

面对巨鲸套利，Blur Farmer 应遵循的 8 条建议

Therefore, before submitting a Bid, please always remember to scan the page for prompt messages. Using a hardware wallet will increase your verification time. Remember, you should only trade with what you can afford to lose, as anything can happen.

面对巨鲸套利，Blur Farmer 应遵循的 8 条建议

5. Monitor Low Bid Prices

You can earn a small portion of BLUR rewards by bidding at a price far below the floor price. However, you may also forget to cancel it and end up with a large bag of unwanted NFTs. Therefore, before bidding, you can get price alerts for NFTs from @oSnipeNFT (Discord) or @etherdrops_bot (Telegram).

6. Bid 的价格不要高于地板

6. Bid prices should not exceed the floor price.

Some NFT collections on Blur can be bid on but not traded. Naturally, degens found that they could bid without risk and earn points through this method. However, when trading for the collection is enabled, high bids will be accepted. For example, a trader bids 2 ETH to purchase a collection with a base price of 0.4 ETH that is not tradable on Blur, but their bid can be accepted. But when the Blur trading for that collection is activated, the trader's bid will be immediately executed.

In addition, due to the recent transfer of NFTs, bids may not be immediately accepted, so you may see overpriced bids during the first hour of the collection's launch. By the way, bidding above the floor price is an invalid strategy. Points are earned based on how close they are to the floor price, not the highest price, so bids above the floor price actually earn fewer points.

7. Beware of Collectibles that Collect Royalties

Blur is now included in the whitelist of NFT markets on OpenSea. If the collectibles you are trading choose to join this whitelist, the attractiveness of the transaction will be greatly reduced due to lower royalties, and many Blur Farmers may cancel their bids and sell at a lower price.

8. Tracking TVL of Blur

Some Blur Farmers exited their positions before the price drop caused by the Blur airdrop, and I estimate that another crash may occur before the double bonus ends on April 1. In addition, the emergence of platforms like @OriginsNFT, @Magically_gg, and @gemxyz V2 will compete for some of the traffic. Of course, Blur can use aggressive token incentives to try to attract liquidity. If successful, you can see Blur's TVL stay above this data.

面对巨鲸套利，Blur Farmer 应遵循的 8 条建议