strategy-dev

CEX-DEX arbitrage workflow

Profit from price differences between centralized and decentralized exchanges

20 min · expert

What you'll have when finished

  • Identify CEX/DEX price gaps
  • Execute arbitrage with proper hedging
  • Account for all costs (gas, fees, slippage)

Before you start

  • Arbitrage windows close in seconds
  • A single mistake can wipe out 100 successful arbs

Walkthrough

  1. Monitor price feeds

    Watch the same token on Binance vs Uniswap. Price difference must exceed total fees + gas.

  2. Calculate net profit

    CEX fee 0.1% + DEX fee 0.3% + gas $5 + slippage 0.5%. Need >1% gap for it to be worth it.

  3. Execute both legs simultaneously

    Buy on CEX while selling on DEX (or vice versa). MEV protection on the DEX side prevents front-running.