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DeFi arbitrage is an exciting but complex space in the world of cryptocurrencies. It offers opportunities for traders to profit from price disparities across decentralized exchanges. >> https://maticz.com/how-to-build-a-crypto-arbitrage-bot
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5 DEFI ARBITRAGE STRATEGIES IN CRYPTO TO KNOW
DeFi offers a range of opportunities for investors and traders, one of which is arbitrage trading. DeFi arbitrage involves taking advantage of price differences for the same asset across multiple decentralized exchanges
SPOT-TO-SPOT ARBITRAGE Spot-to-spot arbitrage is the most straightforward DeFi arbitrage strategy. It involves buying a cryptocurrency at a lower price on one decentralized exchange (DEX) and selling it at a higher price on another DEX. This strategy requires swift execution and keeping a close eye on market prices.
FLASH LOAN ARBITRAGE Flash loans have become a game-changer in DeFi. With a flash loan, you can borrow a significant amount of assets without collateral as long as you repay the loan within the same transaction. Traders use flash loans to exploit price differences on different DEXs.
STABLECOIN ARBITRAGE Stablecoin arbitrage focuses on discrepancies in the prices of stablecoins, such as USDT, USDC, or DAI, across various DEXs. Traders identify instances where a stablecoin is trading slightly above or below its $1 peg and take advantage of these opportunities
TRIANGULAR ARBITRAGE Triangular arbitrage involves a three-step process to profit from price differences among three different assets. Automated trading bots are commonly used for triangular arbitrage due to the rapid execution required for this strategy
YIELD FARMING ARBITRAGE Yield farming involves providing liquidity to DeFi protocols and earning rewards in the form of tokens or interest. Arbitrage opportunities can arise when the yield on one platform exceeds that on another.
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