| Potential Triangular Arbitrage between USDC, ETH, DOT on Lykke Exchange |  |
| Start | Buy | | Buy | | Buy | End | | |
ETH 100 | DOT 0.002253 44388 | | USDC 0.2330 190469 | | ETH 1904 100.03 | 0.03 0.03 |
ETH 100 | USDC 0.0005252 190404 | | DOT 4.290 44383 | | ETH 443.85 100.00 | 0.0 0.0 |
DOT 100 | USDC 0.2330 429.10 | | ETH 1904 0.2254 | | DOT 0.002253 100.03 | 0.03 0.03 |
DOT 100 | ETH 443.85 0.2253 | | USDC 0.0005252 428.98 | | DOT 4.290 100.00 | 0.0 0.0 |
USDC 100 | DOT 4.290 23.31 | | ETH 443.85 0.05252 | | USDC 0.0005252 100.00 | 0.0 0.0 |
USDC 100 | ETH 1904 0.05252 | | DOT 0.002253 23.31 | | USDC 0.2330 100.03 | 0.03 0.03 |
Above are the different combinations of the triangular flow of executions between USD Coin, Ethereum, and Polkadot on Lykke exchange. A triangular arbitrage with cryptocurrencies occurs when a given coin's exchange rate does not match the cross-exchange rate of that coin to another counter currency. The price discrepancies generally arise from situations when one coin is overvalued while another is undervalued. Please note, we use the market (spot) prices between cryptocurrency pairs. You should use real-time bid and ask prices obtained directly from the Lykke marketplace in a real situation.
Triangular intra-exchange arbitrage could be appealing because it happens entirely on a single exchange,
unlike other arbitrage strategies that involve trading across multiple exchanges. To find profitable opportunities
among the given 3-coin combinations below, we can determine if a cross-rate is overvalued.
If there is a price discrepancy when trading between selected assets, we can generate risk-free profit
if the orders are performed correctly, respecting all transaction fees.
The Lykke exchange is a semi-decentralized exchange for cryptocurrencies and fiat. The compan. s subsidiaries, which are licensed as financial companies, provide broker and trading services for clients. All possible asset pair types are tradable: fiat fx to fiat fx, fiat fx to crypto, and crypto to crypto. Lykke, as a company, provide. liquidity, issuance services, and consulting. The commissions and fees for Lykke are close to zero. Lykke exchang. . native wallet is Lykke wallet. Telegram | Facebook | Instagram | LinkedIn | Medium
Triangular arbitrage of digital assets is a trading technique that tries to profit from a price difference between three
different coins on the same cryptocurrency exchange or across different markets.
Sophisticated traders did triangular arbitrage for many years in the forex markets, and it can also
be applied to cryptocurrency markets.
Cryptocurrency arbitrage is the process of taking advantage of inefficiencies in markets. With cryptocurrencies, this can happens more
often as the price of coins fluctuates over time and differs on different exchanges against the homogenous counter currency.
If there is a difference between the cost of an asset across other exchanges (or even potentially within the same market),
it may be possible to buy and sell the same coin in a way that will result in a net profit. A triangular arbitrage opportunity is a
trading strategy that exploits the arbitrage opportunities that exist among three currencies on a single exchange or across multiple exchanges.
The triangular arbitrage is found during the exchange of one coin to another when there are discrepancies in the listed prices for the given
counter currency.