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stat-arbers.md

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statistical arbers


tl; dr


  • search for edges through mathematically ranking assets/trades risk. in tradefi, it's often called "pair trading".
  • for example, arbs between different chains or markets (e.g. ethereum and binance). for instance, if the cex price is greater than the price on-chain, stat arbs can buy on the dex and hedge on the cex. the problem is settlement mismatch: the longer the time period between blocks, the longer tx remains, and the longer it can go without being fully hedged (decreasing combined realized mev).


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