💲Arbitrage
CrossCurve is a cross-chain swap and yield protocol built on top of Curve, creating a unified cross-chain liquidity market by integrating existing Curve pools. Due to the specific AMM formula for stablecoin trading on Curve, there are arbitrage opportunities with stablecoins in our CrossCurve Trade app interface.
To start exploring arbitrage opportunities, follow the step-by-step instructions and learn how to effectively use both methods of stablecoin arbitrage. This guide describes how you can use our Trade interface to swap stablecoins at favorable rates.
Exploring profitable swap routes
To find profitable routes, you can use two methods:
1. Interactive exploration of the user interface
You can experiment with different stablecoin pairs across various networks and observe the potential profitability of each swap. The CrossCurve Trade interface ensures simplicity and efficiency.
To get started in the CrossCurve app, go to the Trade section, click "Connect wallet" in the top right corner, choose a suitable wallet from the list, and confirm the connection, ensuring you are on the official page https://app.crosscurve.fi/swap.
After a successful connection, in the Swap modal window, select the assets you are interested in working with across different networks.
By experimenting with various stablecoin pairs across different networks, you can observe the potential profitability (or loss) of each swap. The interface will display the value of the swapped assets in $ equivalent, allowing you to find the most profitable strategy at the moment:
When choosing a strategy, don't forget to consider gas fees for the swap.
2. Analysis of Curve pools
For those seeking a deeper approach, analyzing the balance of pools on CrossCurve is a suitable option. This method involves thoroughly examining the details of liquidity pools for stablecoin pairs across different networks to identify imbalances that can lead to profitable swaps. Although this approach is more complex, it offers the opportunity for higher profits. We recommend it to users who are well-versed in blockchain contracts and transaction analysis.
Pool addresses:
The pools are adapted to the market by adjusting the weight of assets, maintaining stable exchange rates even with market volatility. Therefore, it is necessary to pay attention to the liquidity balance of each stablecoin in the Pool Details tab by visiting the original Curve liquidity pool you are working with and assessing its balance. Let’s look into the xCRVUSDT pool as an example.
The xCRVUSDT pool consists of six s-tokens, so the pool will be balanced if the share of each asset in the pool is 100/6 = 16.6% of the pool's total TVL.
If you add an asset to the pool whose share is less than 16.6%, you receive an additional bonus for balancing the pool.
If you add an asset to the pool whose share is more than 16.6%, you receive a slippage penalty because this operation worsens the pool's balance.
If you withdraw an asset from the pool whose share is less than 16.6%, you receive a slippage penalty because this operation worsens the pool's balance.
If you withdraw an asset from the pool whose share is more than 16.6%, you receive a bonus because this operation balances the pool.
After selecting which assets to work with, in the Trade tab of the CrossCurve interface, you can make the most profitable swap of the selected stablecoins or LP tokens. Note that the result of the operation depends on the volume of liquidity you are working with: the higher your volume relative to the pool's total TVL, the more likely it is that the imbalanced method will not be profitable, and you should use the balanced mode. To avoid significant losses, always consider these factors and the pool's state before making a transaction.
When choosing a strategy, don't forget to consider gas fees for the swap.
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