# Spot Arbitrage

**Definition**

In Spot/Futures arbitrage, the investor will:

* Borrow at a lower rate, and lend/stake at a higher rate

**How Coinsight Can Help**

* Identifying an opportunity
  * Get current data for multiple lending markets in a single view
  * Get historical data for lending markets to see if the strategy is feasible in the long term

**Analysis and Examples**

Polkadot for example has consistently average 1-2% borrowing rates on [OKX](https://www.coinglass.com/loan/Okex), and it can be staked for up to 14% a year, according to [Staking Rewards](https://www.stakingrewards.com/earn/polkadot/). Spot arbitrage via loans is often the simplest to perform, as it doesn’t require buying or selling. This can often be seen as trading liquidity, where an investor accepts a lower interest rate for a flexible deposit, and another investor can then borrow cheaply to lock the funds in staking.

In this case, an investor could deposit $100 in OKX, borrow $60 worth of DOT and stake it. They would earn around 12% on the borrowed amount, equivalent to a 7.2% yield on the initial amount.
