How Cross-Chain Arbitrage Works
Different chains have independent markets. Token prices can diverge due to varying demand, liquidity depth, and market conditions. Arbitrageurs bridge assets to capture these price gaps.
Arbitrage Flow Example
USDC is $0.998 on Ethereum, $1.002 on Arbitrum
Gap: 0.4%. Bridge fee: 0.06%. Gas: ~0.1%. Net: ~0.24%
Bridge USDC from Ethereum → Arbitrum via Stargate
Sell USDC at higher price, pocket the difference
Bridge Options Comparison
Finding Opportunities
Where to Look
Execution Strategy
Speed Matters
Prices move fast. Use the fastest bridges even if fees are slightly higher. A 2-minute bridge vs 15-minute can mean the difference between profit and loss.
Account for All Costs
Bridge fee + source gas + destination gas + DEX swap fee + slippage. A 0.5% opportunity can easily become -0.2% after all costs.
Pre-fund Destinations
Keep gas tokens on all chains you trade. Waiting to bridge gas kills opportunities.
Risks & Safety
Critical Risks
- • Bridge exploits: Billions lost to bridge hacks. Never bridge more than you can lose.
- • Price movement: Gap can close or reverse during bridge transfer.
- • Failed transactions: Funds can get stuck. Have recovery plans.
- • Gas spikes: High gas on destination can eat your profit.
Interactive Bridge Scanner
Explore bridge routes and calculate arbitrage profitability:
Security Model
Oracle + Relayer
Bridge Cost Estimator
Bridge Safety Checklist
- • Always verify contract addresses before approving
- • Start with small test transactions
- • Check bridge status on official channels during congestion
- • Understand the trust assumptions of your chosen bridge
Related Articles
Frequently Asked Questions
Cross-chain arbitrage profits from price differences of the same token across different blockchains. If ETH is $2,500 on Ethereum and $2,505 on Arbitrum, you can bridge to capture the $5 difference (minus fees).
Fast bridges like Stargate, Across, and Hop are best for arb because speed matters—prices can change during transfer. Native bridges are too slow (hours/days). Consider: fee, speed, liquidity, and reliability.
Risks include: bridge exploits (billions lost to hacks), price movement during transfer, failed transactions, gas costs on both chains eating profits, and liquidity issues. Never risk more than you can afford to lose to bridge risk.
Profitable bridge arb typically needs $10k+ because opportunities are small (0.1-0.5%) and fees are fixed. Smaller amounts often don't cover gas + bridge fees. Professional arb bots use $100k+.
Competitive, but opportunities exist. Professional bots capture most obvious arbs within seconds. Retail can find opportunities in: less-monitored chains, new bridges, volatile periods, or larger size that bots avoid.