Git-Mirrors/mev-toolkit
1
0
Fork 0
mirror of https://github.com/autistic-symposium/mev-toolkit.git synced 2025-04-28 03:36:10 -04:00
Code Issues Packages Projects Releases Wiki Activity

Update README.md

Browse Source
This commit is contained in:
dr. mia von steinkirch, phd 2023-02-14 07:53:55 -08:00 committed by GitHub
parent 413ac53c4f
commit acdcd2f862
No known key found for this signature in database
GPG Key ID: 4AEE18F83AFDEB23
1 changed files with 5 additions and 3 deletions
Show Stats Download Patch File Download Diff File Expand all files Collapse all files

8
MEV_strategies/arbitrage/README.md
View File

@ -7,8 +7,10 @@
<br>
* in tradefi, arbitrage refers to buying something in one venue and selling it in another (through a series of intermediate transactions) for a higher price. this is note risk-free as prices can move mid-transaction.
due to the nature of the evm's atomic execution, **atomic arbitrages** are possible (as opposed to tradefi): smart contracts allow the packaging a sequential execution of txs, for a set of conditions. if the conditions are not met, the execution can fail, undoing all the on-chain interactions that just occurred.
* in **tradefi**, arbitrage refers to buying something in one venue and selling it in another (through a series of intermediate transactions) for a higher price. this is note risk-free as prices can move mid-transaction.
* due to the nature of the evm's atomic execution, **atomic arbitrages** are possible (as opposed to tradefi): smart contracts allow the packaging a sequential execution of txs, for a set of conditions. if the conditions are not met, the execution can fail, undoing all the on-chain interactions that just occurred.
* since **liquidity on-chain is fragmented** (thousands of pools don't communicate with each other, each providing quotes for swapping assets in real-time), it creates an opportunity to buy low and sell high across different pools. for example, two DEXes offer a token at two different prices so that a token can be bought at the lower-priced DEX and sold on the higher-priced DEX in a single atomic transaction.
* **non-atomic (cross-chain, CEX/DEX, etc.) arb** are more profitable and less accessible due to capital requirements and risk profile.
@ -29,7 +31,7 @@ due to the nature of the evm's atomic execution, **atomic arbitrages** are possi
----
### resources
### links
<br>