mev-toolkit/arbitrage

🥯 arbitrage

tl;dr

• 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.

eigeiphi's classification of arbitrage types:

• combination
• sandwich
• spatial
• triangular

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in this dir

• arbitrage patterns
• cool arb txs in the wild

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resources

• anatomy of arber bots