Crypto · Arbitrage
what are common smart contract risks in on-chain arbitrage?
On-chain arbitrage relies on automated smart contract execution to capture price differences across decentralized exchanges, but it faces several interrelated technical and market risks that can cause financial loss, network
which execution strategies minimize slippage in high-frequency crypto arbitrage?
High-frequency crypto arbitrage requires execution strategies that compress latency and preserve available liquidity so that traded prices do not move against the strategy before completion. Slippage arises from limited order
what capital requirements are typical for scalable crypto arbitrage strategies?
Capital components for scalable crypto arbitrage
A scalable crypto arbitrage strategy requires more than a price discrepancy model. Successful operators secure sufficient working capital across multiple venues to absorb settlement latency,
how do flash loans change risk profiles in crypto arbitrage?
Capital efficiency and counterparty exposure
Flash loans let borrowers obtain large sums of capital without collateral for the duration of a single transaction. That atomicity eliminates traditional counterparty credit risk for
how do bridge failures affect cross-chain arbitrage risk?
Cross-chain arbitrage depends on reliable movement of assets across networks. When a bridge fails, whether through a smart contract bug, custodial abuse, or economic exploitation, the immediate effect is a
what role do stablecoin peg deviations play in crypto arbitrage?
Stablecoin peg deviations create the practical space where crypto arbitrageurs operate. A peg deviation occurs when a stablecoin quoted as one US dollar trades above or below that reference value.
how does crypto arbitrage work across multiple exchanges?
Mechanism
Crypto arbitrage exploits short-lived price differentials for the same asset across multiple exchanges. Traders monitor the order book and spot that Bitcoin, for example, is quoted higher on Exchange A
how does mev impact crypto arbitrage opportunities?
Miner extractable value reshapes how arbitrage functions on public blockchains by changing who wins trades, how much they pay to win, and how often apparent opportunities survive long enough to
which on-chain metrics best predict arbitrage opportunities?
Predictive on-chain metrics for arbitrage
Arbitrage on public blockchains is driven by measurable on-chain conditions. Empirical work from the Flashbots research team at Flashbots and commentary from Vitalik Buterin, Ethereum Foundation,
which stablecoins are best for arbitrage settlements?
Choosing a stablecoin for arbitrage settlements requires weighing liquidity, peg stability, settlement finality, and counterparty risk against operational constraints like on-chain gas costs and off-ramp speed. Arbitrage is time-sensitive: a