What is Arbitrage?

How it works

DEX Arbitrage is a strategy based on price differences of the same asset. In our case — across different DEXes within the Solana blockchain. When a token's price changes in one pool (for example, after a large swap), an imbalance arises between other DEXes. Quantum Arb automatically captures such opportunities: it buys the token where it is cheaper and sells where it is more expensive, closing the arbitrage window.

All trades are atomic: the buy and sell occur within a single transaction. If there is no profit when it is initiated, the transaction simply fails — the system never executes loss-making operations.

The user receives profit from each successful trade, and Quantum Arb takes 15% fee on profits. If a trade yields no income, no fee is charged.

Thus, Quantum Arb enables earning from arbitrage between DEXes on Solana, fully automating the discovery of opportunities and trade execution.


Entry threshold

Arbitrage on Solana is a highly competitive environment. Every price imbalance between DEXes is an arbitrage window, and only the one who first closes it receives the profit. All other participants trying to profit from the same window no longer earn anything.

The the more powerful and optimized the setup, the higher the competitiveness. Fast servers, distributed infrastructure, low-latency Yellowstone gRPC connections increase the likelihood that your transaction will be included first. A large percentage of success comes down to speed — the faster your system, the more profitable windows you can close.

At the same time Quantum Arb makes the entry threshold low:

  • To launch, it is enough 1 CPU and 2 GB RAM — expensive servers are not required.

  • Powerful RPCs are not required — the system integrates many Transaction Processors (JITO, ZERO_SLOT, NOZOMI, FAST ...), which fast and efficiently land transactions.

  • The strategy Transaction Spam allows participating in arbitrage without a fast Yellowstone gRPC, sending many transactions through processors.

  • Thanks to Flash Loan, the user does not even need their own liquidity — borrowed funds can be used within a single transaction, making participation available even without capital.

Thus, Quantum Arb opens arbitrage on Solana to any level of user — from beginners with minimal resources to professionals with high-speed setups.


Fees, risks

The main costs when working with Quantum Arb are related to transaction fees.

When an arbitrage window appears, profit goes only to the one who closes it first. All other transactions sent by other participants are initialized, but fail, because there is no profit at the moment of their execution. Even for such unsuccessful transactions the user still pays priority fee — a fee to the validator for including the transaction in the block.

Therefore, the strategy's efficiency directly affects the financial outcome. If the bot often fails to close windows, fee expenses can exceed the profit.

It is also worth considering infrastructure costs — renting servers, using private fast gRPC. Scaling the setup increases the chance of success but increases the cost of participation.

Thus, the main task of the user is to configure the strategy so that profit from successful trades covers fees and infrastructure expenses, maintaining a balance between speed, stability, and costs.

Last updated