DEX Arbitrage
When the same token has different prices on two DEXs, an arbitrageur can buy low on one and sell high on the other — all in a single atomic transaction. This is the most common form of MEV, accounting for ~40% of all MEV extraction on Ethereum.
Two-Pool Price Discrepancy
When a large swap on Pool A moves its price, Pool B still has the old price. An arbitrageur buys cheap on Pool B and sells on Pool A, equalizing prices and pocketing the difference.
Price Spread
$50 (1.67%)
Optimal Trade Size
5.2 ETH
Gross Profit
$130
Net Profit (after gas)
$115
Cyclic Arbitrage: A → B → C → A
More complex arbitrage routes trade through 3+ pools in a cycle: start with token A, trade through B and C, end up with more A than you started with.
ETH
Start: 10 ETH
Uniswap → 30,500 USDC
USDC
30,500
Curve → 30,480 DAI
DAI
30,480
SushiSwap → 10.08 ETH
ETH
10.08 ETH (+0.08)
Cycle Profit
0.08 ETH ($240)
Gas + Priority Fee
0.01 ETH ($30)
Net Profit
0.07 ETH ($210)
The Latency Race: Who Gets the Arb?
Multiple searchers spot the same opportunity. It comes down to speed (who submits first), bid price (who pays the builder more), and strategy (bundle construction).
Arb Opportunity
$500
Winner
-
Winning Bid
-
Builder Tip %
-
DEX Arbitrage by the Numbers
~$200M
Monthly DEX arb volume (2024)
~40%
Share of all MEV extraction
12ms
Typical searcher latency
90%+
Profit goes to proposer via bids
2-5
Average hops in cyclic arb
~$15
Median arb profit per tx