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For example Token A costs 1.00$ on Uniswap and 1.05$ on Sushiswap. So I can buy Token A on Uniswap and sell on Sushiswap for profit.

Let's suppose the next conditions:

  1. Uniswap reserve pool = 100 ETH / 100000 USDC. 1 ETH = 1000 USDC
  2. Sushiswap reserve pool = 97 ETH / 105000 USDC. 1 ETH = 1082 USDC

How to calculate an optimal swap amount (accounting price impact) on Uniswap to sell for the maximum profit on Sushiswap?

Serhii Zharkov
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  • I do not know what I am missing here, if you see there is a good arbitrage opportnity you should swap all. if you have 1000 usdc in uniswap, swap all for eth, get 1 eth back and swap this 1 eth for 1082 usdc in sushiswap – Yilmaz Dec 24 '22 at 05:01
  • In low liquidity markets it's not so easy and you should count price impact to stay profitable. – Serhii Zharkov Dec 24 '22 at 13:00
  • If there is not enoigh liquidity, that means you cannot trade. assuming you swapped all your usdc to eth in uniswap, and since there is no liquidity in sushiswap, you will be holding the eth. – Yilmaz Dec 27 '22 at 16:52
  • It's a really good question actually, and @Yilmaz what you are missing is that the more you buy, the higher the price impact, and thus the higher the execution price. – Chev_603 Jan 16 '23 at 02:55

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