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DEX Arbitrage

Medium risk

Arbitrage between two decentralized exchanges (or two pools) on the same chain.

Illustrative networks

BNB Smart Chain
Ethereum

Illustrative venues

PancakeSwap
Uniswap
Biswap

How it works

1

Compare pools

Read reserves from two pools trading the same pair (e.g. BNB/USDT on two different DEXs).

2

Compute the gap

Work out the effective price on each pool after accounting for their fee tiers.

3

Route the trade

Buy low on one pool, sell high on the other, often within one transaction using a router or flash loan.

4

Verify profitability

Subtract gas and fees from the raw price gap to see if it was actually worth executing.

Explanation

Because each DEX pool prices assets independently based on its own reserves, two pools for the same pair rarely have exactly the same price at every moment.

This is one of the simplest forms of arbitrage to reason about, and also one of the most competitive, since it only requires reading public reserve data - no bridging, no private information.

FAQ

Can this be simulated safely?

Yes - see the Simulator page, which uses illustrative numbers you control to show how the calculation works, without placing any real trades.

Want to see the math with numbers you control?

Open the simulator