Paper 2023/1898

An Empirical Study of Cross-chain Arbitrage in Decentralized Exchanges

Ori Mazor, Technion – Israel Institute of Technology
Ori Rottenstreich, Technion – Israel Institute of Technology

Blockchain interoperability refers to the ability of blockchains to share information with each other. Decentralized Exchanges (DEXs) are peer-to-peer marketplaces where traders can exchange cryptocurrencies. Several studies have focused on arbitrage analysis within a single blockchain, typically in Ethereum. Recently, we have seen a growing interest in cross-chain technologies to create a more interconnected blockchain network. We present a framework to study cross-chain arbitrage in DEXs. We use this framework to analyze cross-chain arbitrages between two popular DEXs, PancakeSwap and QuickSwap, within a time frame of a month. While PancakeSwap is implemented on a blockchain named BNB Chain, QuickSwap is implemented on a different blockchain named Polygon. The approach of this work is to study the cross-chain arbitrage through an empirical study. We refer to the number of arbitrages, their revenue as well as to their duration. This work lays the basis for understanding cross-chain arbitrage and its potential impact on the blockchain technology.

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Publication info
Published elsewhere. Minor revision. International Conference on Communication Systems and Networks (COMSNETS) 2024
BlockchainDecentralized ExchangesDeFiArbitrage
Contact author(s)
orimazor @ campus technion ac il
or @ technion ac il
2023-12-11: approved
2023-12-10: received
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      author = {Ori Mazor and Ori Rottenstreich},
      title = {An Empirical Study of Cross-chain Arbitrage in Decentralized Exchanges},
      howpublished = {Cryptology ePrint Archive, Paper 2023/1898},
      year = {2023},
      note = {\url{}},
      url = {}
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