Cross-platform arbitrage is an MEV strategy where traders exploit price discrepancies for the same asset across multiple decentralized exchanges by quickly buying at a lower price and selling at a higher price.
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Arbitrage opportunities, where a trader profits from price discrepancies between different markets, are built into the design of DEXs.
Arbitrage is another common but less controversial MEV tactic in which traders exploit tiny price differences for the same token on different exchanges
Tokens will often have different prices on decentralized exchanges due to varying demand. When there’s a significant price difference across one exchange to another, MEV bots will buy lower-priced tokens to sell them on another exchange at a higher value
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Maximal Extractable Value (MEV)
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Tactics and mechanisms
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