mirror of
https://github.com/autistic-symposium/mev-toolkit.git
synced 2025-05-02 14:56:18 -04:00
50 lines
1.5 KiB
Markdown
50 lines
1.5 KiB
Markdown
## arbitrage
|
|
|
|
<br>
|
|
|
|
### tl;dr
|
|
|
|
<br>
|
|
|
|
|
|
* 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
|
|
|
|
<br>
|
|
|
|
<img width="350" src="https://user-images.githubusercontent.com/1130416/217386455-c829a750-3bf1-4786-899d-adcb7d816573.png">
|
|
|
|
|
|
|
|
<br>
|
|
|
|
----
|
|
|
|
### in this dir
|
|
|
|
<br>
|
|
|
|
* [arbitrage patterns](patterns)
|
|
* [cool arb txs in the wild](mev_bots_wild)
|
|
|
|
|
|
<br>
|
|
|
|
----
|
|
|
|
### resources
|
|
|
|
<br>
|
|
|
|
* [anatomy of arber bots](https://github.com/go-outside-labs/mev-toolkit/blob/main/anatomy_of_mev_bots/bots/arbers.md)
|
|
|
|
|