Cauldron Arbitrage Statistics

Technical
#1

I have been gathering some statistics regarding the arbitrage that happens on the Bitcoin Cash network for extracting value from unbalanced Cauldron pools.
This is a static page that I might be updating going forwards:
https://robchank.github.io/arbstats/

Some notes:

  1. The patterns suggest several bots are doing arbitrage and competing for the opportunities. This results in mempool de-synchronization and will get worse the more bots that are deployed.
  2. Miners are sleeping on this. This is MEV left on the table for user bots to take profit. Miners can also do it more cheaply since there is no need to create an output for collecting the profits.
  3. Wallets need to be smart and use as many pools as economically feasible to keep the number of arbitrage opportunities low.
2 Likes
#2

Hmmmmmm very very interesting.

We’re going to need to try be on the front foot with MEV as much as we can. It’s ultimately a sign of success, a growing ecosystem will create more opportunities for MEV because we’re growing, but that also raises the bar for us to address it and minimise it as much as we can.