Update stat-arbers.md

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dr. mia von steinkirch, phd 2023-02-09 18:33:22 -08:00 committed by GitHub
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* search for edges through mathematically ranking assets/trades risk. for example, arbs between different chains or markets (e.g. ethereum and binance).
* for instance, if the cex price is greater than the price on-chain, stat arbs can buy on the dex and hedge on the cex. the problem is settlement mismatch: the longer the time period between blocks, the longer tx remains, and the longer it can go without being fully hedged (decreasing combined realized mev).
* search for edges through mathematically ranking assets/trades risk. in tradefi, it's often called "pair trading".
* for example, arbs between different chains or markets (e.g. ethereum and binance). for instance, if the cex price is greater than the price on-chain, stat arbs can buy on the dex and hedge on the cex. the problem is settlement mismatch: the longer the time period between blocks, the longer tx remains, and the longer it can go without being fully hedged (decreasing combined realized mev).