Flip-Flop Tutorial
Because the prices on Pancakeswap and Uniswap are independent, there is sometimes the opportunity to take advantage of a difference in price by buying on one exchange and quickly selling on the other. In the below example I will show you how I made a quick profit from buying on Uniswap and selling on Pancakeswap.
Step 1: Noticing an opportunity exists
Once you have mastered the other steps, this will be the only one which requires a bit of thinking. Figuring out whether you can actually make money requires a knowledge of how liquidity pools and pricing works, but even if you are unfamiliar with this, you can still partake in a flip-flop arbitrage.
The above screenshot is the the Flip-Flop Calculator page on the new Cross-Fi.org website which will be released in the next two weeks. It combines the liquidity pool states of both Uniswap and Pancakeswap, along with the estimated cost of the fees you will incur.
It also provides the bid you should place in order to make the most amount of profit. As you can see, the current market conditions indicate I could make $25 profit from a quick arbitrage play. This could change in an instant if fees skyrocket or a transaction takes place while you are in the process of carrying out your flip-flop, so be aware there is still a risk associated!
Step 2: Buy your tokens
As seen in the screenshot above, Uniswap was trading at $4.36 while Pancakeswap was trading at $4.92. So I will make the bid of about $800 on Uniswap.
Spending 0.26 ETH, I was estimated to receive 178.634 GCAC tokens in return.
Step 3: Send Tokens to the Flip-Flop Address
As Uniswap runs on the ERC-20 network and Pancakeswap runs on the BEP-20 network, we must convert our ERC-20 tokens to be able to sell these on Pancakeswap. Abbey have created a Flip-Flop address which does this work for you. All you need to do is send your tokens to the following address:
0x2ec7d593763eed26defa231b4c566252e2667a6b
To do this, press the send button which is the middle blue button shown in the screenshot below.
Step 4: Convert your Metamask wallet to show BEP-20 Tokens
As you can see in the screenshot above, in the top right corner it says we are on the Ethereum Mainnet. To show our GCAC tokens we have just transferred, we will need to show BEP-20 tokens. This is very easy to do. Simply click the Ethereum Mainnet which will open a dropdown list. At the bottom you will see Custom RPC. This will allow us to add our custom wallet. You will then be greeted by a simple form in which you will just enter this information.
Network Name: Smart Chain
New RPC URL: https://bsc-dataseed.binance.org/
Chain ID: 56
Currency Symbol (Optional): BNB
Block Explorer URL (Optional): https://bscscan.com
Your Metamask wallet should now show BNB instead of ETH. Don’t worry if your GCAC tokens aren’t showing up. Click Add Tokens and paste this address in the contract address box:
0x3a3ee21157906a17ee9775d37e7a8cb3d7df86d6
Step 5: Sell your tokens on Pancakeswap
All that is left to do now is sell our GCAC tokens on Pancakeswap and realise our profit. This is done in the exact same way as Uniswap in which we connect our wallet. You will need to have a few dollars worth of BNB in your wallet to pay your transaction fee.
Step 6: Calculate your actual profit!
At the beginning of this process, I had 0.3577 ETH in my wallet. This is worth $1,114.50 at the time of writing.
I then purchased approx. 182.88648 GCAC tokens for 0.26 ETH ($810.09). I spent $24.14 on my transaction fee.
I then transferred my fees to the flip-flop address, which charged me a fee of $8.43.
After selling my GCAC tokens, I received 1.8035 BNB ($863.18) while I spent $0.29 on this fee.
My new balances look like this:
ETH: 0.0977 ($304.407)
BNB: 1.8035 ($863.18)
New balance total: $1,167.59
Total Profit: $1,167.59-$1,114.50=$53.09
Below are each of the transaction links so you can see for yourself each stage:
Buy on Uniswap: https://etherscan.io/tx/0x4855b86f16fd64e2e1da34bce6ca923ef1148614bf7d1e55e9cbc5903509c8fa
Transfer to Flip Address: https://etherscan.io/tx/0x3ca398504849cf5f9ac6b4ef080bae0688ee5227ee184ca67fdb35e4dd2dc393
Sell on Pancakeswap: Binance Transaction Hash (Txhash) Details | BscScan
Flop:
Done on the new TNDY token, a flop is realising the price on Pancakeswap is lower than on Uniswap and as a result buying tokens BEP-20 tokens and flopping them over.
Step 1: Realise Opportunity Exists
The price on Uniswap at the time of the trades was $12.07, while the price on Pancakeswap was $8.41. Clearly, this was a great opportunity for an arbitrage play! Using the Cross-Fi website calculator, it was estimated that a $7,000 bid would maximise profit. Unfortunately, I wasn’t in a position to gather together that sort of money, so a $4,615.20 bid will have to suffice!
Step 2: Buy on Pancakeswap
My $4,615.20 converted to 9.914 BNB. This gave me 579.51 TNDY tokens. I paid $0.28 in fees (joys of Pancakeswap!).
Step 3: Burn our TNDY Tokens
Using BSCscan.com, we can burn our tokens which is the first stage of actually flopping.
Head to the following URL and you will see this page.
Connect your MetaMask by pressing the ‘Connect to Web3’ button. You will see number 2 is the burn function which we will need. It’s vital you remember that this number will be divided by 10¹⁸, so as I am burning 579.115 tokens, I will instead insert 579115 followed by 15 zeroes. Feel free to message me for confirmation if you are unsure of this step. Once you press write, BSCscan will burn the tokens. Make sure the transaction goes through before continuing to the next steps.
Note:
For GCAC, this is the link you will use:
Step 4: Send the flip-flop Address ETH
Head to Abbey.ch and check the flip-flop section to see how much ETH we need to send to the flip address to process our transaction.
Once completed, our tokens should arrive in our ETH MetaMask wallet in around 5 minutes (Times can vary. If it is taking longer than 20 minutes please contact me).
Step 5: Sell our Tokens on Uniswap
We can now sell our tokens on Uniswap. As you can see below, we received $6,384.04 worth of ETH for the tokens we sold. Even after spending $105.78 on gas fees, we still made a very healthy profit!
Step 6: Calculate our Exact Profits
Started with $4234.97.
Bought TNDY Tokens: Spent $0.27 on fees.
Burned our Tokens: Spent $0.08
Sent ETH to the Flip Address: $46.10 (0.014 ETH) + $13.68 Transaction Fee (0.0041 ETH)
Sell TNDY Tokens for ETH on Uniswap: $6,384.04 (1.63 ETH) — $96.99 Transaction fee (0.0286 ETH)
We made a gross profit of $6,384.04-$4,234.97=$2,149.07
