Crypto/DeFi

Exploring the world of decentralized finance (DeFi), where blockchain technology transforms traditional financial systems into open, permissionless, and transparent ecosystems.

Uniswap v2 arbitrage optimization

Arbitrage is a method of earning risk-free profits by capitalizing on price differences, and accurate calculations are essential for optimal profits. Decentralized exchange (DEX) list liquidity pools of different token pairs, and when liquidity is added, removed, or traded, price differences can occur between different pools. These price differences can be used to perform risk-free arbitrage, or arbitrage, between two pools. You can see that arbitrage is possible, and you can also see how much liquidity each pool holds. So,