Arbitrage in the low-volatility era: where to find spreads?
After a series of sharp moves, the market has stabilized, but liquidity remains unevenly distributed. A breakout from the current range may lead to brief quote divergences, especially during volume surges and liquidations.
Where to look for opportunities?
🔹 CEX-DEX: On centralized exchanges, large market orders quickly move quotes, while prices in DEX pools depend on swaps and available liquidity. This creates opportunities for short-term arbitrage.
🔹 DEX-DEX: Differences in pool depth and slippage preserve the potential for price divergences between routes. Fees and available liquidity are especially important when calculating arbitrage paths.
When the market lacks a clear trend, arbitrage becomes the main source of income for algorithmic bots.
#Arbitrage #defi #cryptotrading
$BTC
$ETH
After a series of sharp moves, the market has stabilized, but liquidity remains unevenly distributed. A breakout from the current range may lead to brief quote divergences, especially during volume surges and liquidations.
Where to look for opportunities?
🔹 CEX-DEX: On centralized exchanges, large market orders quickly move quotes, while prices in DEX pools depend on swaps and available liquidity. This creates opportunities for short-term arbitrage.
🔹 DEX-DEX: Differences in pool depth and slippage preserve the potential for price divergences between routes. Fees and available liquidity are especially important when calculating arbitrage paths.
When the market lacks a clear trend, arbitrage becomes the main source of income for algorithmic bots.
#Arbitrage #defi #cryptotrading
$BTC
$ETH