Arbitrage Engine

Multi-Dimensional Arbitrage Detection

The arbitrage engine continuously scans for profitable trading opportunities across three fundamental dimensions of cryptocurrency markets. This systematic approach identifies price inefficiencies that can be exploited through simultaneous buy and sell orders, generating risk-free profits after accounting for trading fees and execution costs.

Data Sources

The engine relies on multiple data streams to maintain real-time market awareness:

• Market Data: Static market information collected via REST APIs from Aster, Backpack, and zkLighter exchanges, including trading pairs, fees, and market parameters

• Real-time Orderbooks: Live bid and ask prices streamed via WebSocket connections, providing depth of market information for precise price discovery

• Funding Rates: Real-time funding rate updates for perpetual futures contracts, essential for funding rate arbitrage calculations

Detection Dimensions

The system analyzes arbitrage opportunities across three distinct but interconnected dimensions:

• Temporal: Exploits price differences between spot markets (immediate delivery) and futures markets (future delivery) on the same exchange

• Spatial: Identifies price discrepancies for the same asset trading across different exchanges

• Financial: Captures funding rate differentials between exchanges, generating yield through systematic long-short positioning