How to Arbitrage Cross-Chain
Cross-chain arbitrage exploits price differences for the same asset across different blockchains. Buy low on one chain, bridge, sell high on another.
How It Works
- Identify price discrepancy
- Buy on cheaper chain
- Bridge to expensive chain
- Sell for profit
| Chain | ETH Price | Difference |
|---|---|---|
| . . . - | . . . . . - | . . . . . . |
| Arbitrum | $2,000 | Base |
| Polygon | $2,015 | +0.75% |
Profit potential: 0.75% minus bridge fees and gas.
Challenges
- Bridge time (prices may change)
- Gas costs on both chains
- Slippage on large trades
- Competition from MEV bots
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Step-by-Step Instructions
1
Set Up Multi-Chain
Fund wallets on chains you will arbitrage. Popular pairs: Arbitrum/Optimism/Base.
Tips
- ✓Pre-fund with gas on all chains
- ✓Stablecoins are safer for arb
2
Monitor Price Spreads
Use DEX aggregators (1inch, Paraswap) to compare prices across chains.
Tips
- ✓Set up price alerts
- ✓DefiLlama shows cross-chain prices
- ✓Calculate including all fees
3
Calculate Profitability
Total profit = price difference - buy fees - bridge cost - sell fees - gas.
Tips
- ✓Often need >1% spread to profit
- ✓Include slippage estimates
4
Execute Buy
Buy on cheaper chain with maximum slippage protection.
Tips
- ✓Use limit orders if possible
- ✓Speed matters - prices move
5
Bridge Quickly
Use fastest bridge option. Every minute increases risk.
Tips
- ✓Across is fast (1-2 min)
- ✓Stargate for stablecoins
- ✓Pay premium for speed
6
Execute Sell
Sell immediately on arrival. Use DEX aggregator for best price.
Warnings
- ⚠Price may have moved
- ⚠Be prepared to abort if unprofitable
7
Calculate Actual Profit
Compare proceeds to costs. Track all transactions for taxes.
Tips
- ✓Keep records of all txs
- ✓Calculate true ROI