Arbitrage Between 2 Pools
In the 💱 2 Pools Arbitrage section, you'll find the basic explanation of arbitrage between two liquidity pools.
The essence of earning is simple: buy low, sell high. This involves using two different liquidity pools with different prices for the same token pair.
Arbitrage Formats:
🏊♂️🏊♂️ DEX-DEX: Two pools on the same or different decentralized exchanges 🏊♂️📈 DEX-CEX: Pool on DEX and centralized exchange 📈📈 CEX-CEX: Two different centralized exchanges
Key Considerations:
Gas Fees Calculate transaction costs carefully as they directly impact profitability.
Price Impact Larger trades can significantly affect pool prices, potentially reducing profits.
Pool Liquidity Ensure pools have sufficient liquidity for your intended trade size.
How Does 2 Pools Arbitrage Work?
Let's look at a practical example:
Pool 1: 1 WETH = 2,900 USDC
Pool 2: 1 WETH = 3,050 USDC
In this scenario:
Sell 100 WETH in Pool 2 → Receive 305,000 USDC
Use 305,000 USDC in Pool 1 → Receive 105.27 WETH
Profit: 5.27 WETH (minus gas fees)
How to Earn Consistently?
💵 Learn how to spot and execute profitable 2-pool arbitrage opportunities 💵 Get access to real-time arbitrage signals and tools
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