⚡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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