diff --git a/MEV_strategies/arbitrage/README.md b/MEV_strategies/arbitrage/README.md index 4ddba4d..85134ee 100644 --- a/MEV_strategies/arbitrage/README.md +++ b/MEV_strategies/arbitrage/README.md @@ -7,23 +7,10 @@
+* in tradefi, arbitrage refers to buying something on one venue and selling it on 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. -* 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. - -##### [arbitrage types:](https://mirror.xyz/0xc19565163aFdEe3783FC970E4Bd0275B11848d34/a_v8f9yRqRFAvmOaEltTkPJSt1geSAwQdDps2Avb-DA) - - -* spatial (exchanges are located in different locations) -* triangular (profit from trading loops) -* statistical (rely on mathematical models for high-frequency arbs) -* cross-exchange -* sandwich - -
- - - - +* **non-atomic (cross-chain, CEX/DEX, etc.) arb** are more profitable and less accessible due capital requirements and risk profile.
@@ -34,6 +21,7 @@
* [arbitrage patterns](patterns) +* [arbitrage algorithms](algorithm) * [cool arb txs in the wild](mev_bots_wild)