Arbitrage Profit for Constant Product AMM | DeFi

Equations for arbitrage profit in a constant product AMM such as Uniswap V2
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[@smartcontractprogrammer]

Notes github.com/stakewithus/notes Take a course www.smartcontract.engineer/

[@horizon_eth]

That was a very useful video for me, thanks for letting me know to calculate arbitrage profit for Constant Product AMMs. I just want to ask one more thing, how can we calculate the Arbitrage Profit for Concentrated Liquidity AMMs like Uniswap V3 pools ? I searched on your youtube channel and there wasn't anything about it, so could you explain me how can the profit be calculated on V3 pool ? like WETH-USDC pool? thanks.

[@smartcontractprogrammer]

easiest way is to simulate the transaction before sending

[@horizon_eth]

@@smartcontractprogrammer thanks for the info.

[@Namids]

Please am slowly following all your videos...

[@breeze2375]

you can adjust playback speed to a lower speed. this video also has close captions which you can use to make notes. programming is a sport, you gotta code and code and code and code till you hear someone speak this fast and you can grasp the concept. enjoy and happy hacking!

[@crashbdx]

Very interesting, how can we calculate the optimum dx amount to sell for maximum profit?

[@smartcontractprogrammer]

calculate dx that will bring P to P - dp

[@luce36]

😵‍💫

[@comechina]

is it possible to use the same method between 2 AMM or a CEX must be use because of the CEX price certainty?

[@smartcontractprogrammer]

Math also works for 2 AMM, assuming the one of them has a deep liquidity. Here we replace the CEX with the AMM with the larger liquidity.

[@ViralKiller]

didnt understand a word

[@dipoadekeye8851]

This calculation is too complex, wish you could explain it simply to us amateurs