🍌Arbitrage

Arbitrage on Solana

Arbitrage is the practice of exploiting price differences of the same asset in different markets to generate a profit. On Solana, arbitrage opportunities can be found by comparing prices of tokens across various decentralized exchanges (DEXs). There are two main types of arbitrage: Normal Arbitrage and Triangle Arbitrage.

Normal Arbitrage

Normal Arbitrage, also known as simple arbitrage, involves buying a token at a lower price on one DEX and selling it at a higher price on another DEX. Here’s how it works:

Triangle Arbitrage

Triangle Arbitrage involves three tokens and three trades. It exploits price discrepancies in the relative value of three different tokens across multiple markets. Here’s how it works:

Example:

• Trade SOL for USDC on Raydium.

• Trade USDC for ETH on Orca.

• Trade ETH back to SOL on Fluxbeam.

• Profit: If the product of the exchange rates results in more SOL than you started with, minus trading fees, then it’s a profitable triangle arbitrage. You don't need to do anything our bot will found the best opportunity to you in real time.

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