So I came across this Arbitrage opportunity which lasted for about 20 mins only and I quickly took advantage of it. This was using FOTO/MATIC pairing which seemed to have met all criteria for the Arbitrage to work.
So here 54 FOTO swapped to MATIC you made about 1.12751 MATIC.
However on Polkaswap 1 MATIC you could swap with 54.006 FOTO.
Meaning you would earn more by swapping FOTO for MATIC on the Uniswap exchange.
So how this works is like this. Now this works nicely if you had FOTO tokens in the first place.
- You take your FOTO and use uniswap to exchange to MATIC. every 54 FOTO you receive 1.12 MATIC.
- You then use the polka bridge to bring your MATIC over to Polkaswap.
- You then swap MATIC to FOTO. You would have gained more FOTO already as previously you swapped 54 for 1.12 MATIC and in Polkaswap 1 MATIC you gain 54 FOTO. Your total earning PER Matic is 0.12 MATIC.
- You then take that FOTO with the extra and then use the bridge to bring it to Uniswap again
- Swap FOTO back to Matic once more with its gain.
Well .. this works only if it meets these criteria.
- Gas fee / Tx fee is low
- Larger liquidity on the pairs
- You don't wait and take action immediately as Arbitrage window of opportunity only last for less then 30 mins at most.
In this case .. I only managed to swap about 3 times before the entire opportunity was over.
Cheers all hope this gives some light into manual arbitrage trading between dex
Have a brilliant weekend