Dyson Swap
  • ☄️Dyson Swap
  • 📚How it works
  • 🚀Getting Started
    • 🌊Liquidity Providers
    • 🍞Arbitrage and Fees
    • 🪙Token (DYSWAP)
    • 🏷️Referrals
  • ⚙️Protocol Design
    • 📐Principles
    • ♻️Swaps
    • ⚡Internal Arbitrage
    • 👨‍🔬Pool Equations
    • ✨Tachyon Math Library
  • 💾Developers
    • 🔌SDK
    • 🤖Arbitrage
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  1. Protocol Design

Internal Arbitrage

Capturing Arbitrage Opportunities

Standard swaps with this protocol are arbitrage-resistant. There is a separate Solana program function to capture arbitrage opportunities, where users may transact at the internal mark price. With a single Solana instruction, a user can make a multi-hop swap and generate significant arbitrage profits. Nearly all of these profits are sent to liquidity providers, though the arbitrageur gets a small percentage for having identified an internal mispricing, as does the protocol.

As the protocol liquidity grows, so too will the percentage of internal-to-internal vs. internal-to-external arbitrage opportunities. This will cause the protocol efficiency to dramatically increase as it gains market share.

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Last updated 2 years ago

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