What is arbitrage?

Arbitrage is the simultaneous buying and selling of the same asset in different markets to profit from price differences.

Why do price differences occur between DEXs?

Type #1: Simple Spot Arbitrage (HyperCore ↔ AMM)

The simplest and most common type of arbitrage on Hyperliquid.

A real profitable example:

Scenario: Major Selling of ETH on Hyperswap After FUD News

Type #2: Triangular Arbitrage (within the AMM ecosystem)

Triangular arbitrage exploits price discrepancies between three token pairs on one or more DEXs.

Step 1: Monitor prices on different DEXs

Step 2: Calculating Profitability

Step 3: Timing execution

Step 1: Buy on HyperCore Spot

1. Go to https://app.hyperliquid.xyz/trade/HYPE
2. Select "Buy" tab
3. Choose "Limit" order type
4. Price: $25.02 (or best ask)
5. Amount: 1,000 HYPE
6. Submit → Approve tx in MetaMask
7. Wait for fill confirmation (~1-2 sec)

Step 2: Sell on Hyperswap

1. Go to https://hyperswap.fi
2. Select HYPE → USDC swap
3. Input: 1,000 HYPE
4. Check output: Should be ~$25,080 (verify spread still exists!)
5. Set slippage: 0.2%
6. Click "Swap" → Approve tx
7. Wait for confirmation

Step 3: Verify profit

• Check wallet balances
• Calculate actual profit/loss
• Record for future analysis

Step 5: Risk management

Challenge #1: Speed execution

Challenge #2: Gas cost erosion

Challenge #3: Incomplete execution risk

Challenge #4: Compete with bots

Challenge #5: Mental Load

Key components of the arbitrage bot:

def monitor_prices():
    while True:
        hypercore_price = get_hypercore_price("HYPE/USDC")
        hyperswap_price = get_hyperswap_price("HYPE/USDC")
        kittenswap_price = get_kittenswap_price("HYPE/USDC")
        
        spread_1 = abs(hypercore_price - hyperswap_price) / hypercore_price
        spread_2 = abs(hypercore_price - kittenswap_price) / hypercore_price
        
        if spread_1 > 0.005:
            execute_arbitrage("HyperCore", "Hyperswap", "HYPE/USDC")
        
        time.sleep(0.1)
          

Technology: Multi-source routing

When you swap through Hypertrade, it simulates all routes and selects the one with maximum output and minimum slippage.

Scenario: Alice wants to swap $10,000 USDC → ETH.

Option 2: Using Hypertrade

Q1: Is it legal to engage in arbitration?

A: Yes, it is absolutely legal. Arbitrage is a fundamental market activity that helps price discovery and reduces inefficiencies. You are not breaking any laws by trading on public DEXs.

Legal note: Make sure you comply with the tax regulations of your jurisdiction (reporting gains).

Q2: How much capital does it take to start manual arbitrage?

A: Minimum $5,000-10,000 for arbitrage to be practically profitable after fees + gas.

Breakdown:

• $1,000: Gas eats up too much profit %
• $5,000: Marginally profitable if spread >0.6%
• $10,000+: Comfortable profitable with spread >0.5%

Recommendation: If the capital <$10k, use Hypertrade instead of manual arbitrage.

Q3: How Often Do >0.5% Arbitrage Opportunities Occur?

A: Depends on market conditions:

Q4: Can Hypertrade guarantee a better price than single DEX?

A: Yes, 95%+ of the time, Hypertrade finds a better or equal price compared to the best single DEX.

Proof: Invisium Simulations tests all possible paths before execution. If a single DEX is better, Hypertrade routes through it. If split-routing is better, uses it.

Exception (rare <5%): In extreme low-liquidity situations for obscure tokens, the difference can be negligible.

Q5: Do I need coding skills to use Hypertrade?

A: Absolutely not. Hypertrade is a UI-friendly aggregator:

1. Connect wallet (MetaMask, WalletConnect)
2. Input swap details (from token, to token, amount)
3. Click “Swap”
4. Approve transaction

Zero coding required. Hypertrade automatically does all the arbitrage magic backend.

Q6: Is it better to build your own arbitrage bot or use Hypertrade?

A: Use Hypertrade if:

• Capital <$100k
• Not an expert developer
• Want to simply get the best prices without headaches

Build a bot if:

• Capital $100k+
• Experienced programmer
• Want specific strategies (stat arb, funding rate arb, flash loans)
• Ready for constant optimization + monitoring

Hybrid approach: Use Hypertrade for regular swaps and a bot for specialized strategies.

1. Arbitrage is a real opportunity on Hyperliquid:

• Fragmentated liquidity between HyperCore Spot, Hyperswap, Kittenswap, Prjx
• Price differences of 0.2-2%+ appear daily
• Professional Teams Earn $5M+ With Bots

2. Manual arbitrage — challenging:

• Requires $10k+ capital
• Competition with fast bots
• Mental stress is high
• Success rate <5% for humans vs. bots

3. Custom bot – only for advanced:

• Development: $10k-30k or 300-500 hours
• Requires programming skills
• ROI is justified only with a capital of $100k+

4. Hypertrade – Arbitrage for Everyone:

• ✅ $0 capital minimum (works for any amount)
• ✅ Zero coding required
• ✅ Automatic routing through all DEXs
• ✅ 99.5-99.9% accuracy (Invisium Simulations)
• ✅ 0% platform fees
• ✅ ~1-2 sec execution

Hypertrade:

• Platform: https://ht.xyz
• Documentation: https://docs.hypertrade.io
• Routing explanation: https://docs.hypertrade.io/routing

Hyperliquid DEXes:

• HyperCore Spot: https://app.hyperliquid.xyz
• Hyperswap: https://hyperswap.fi
• Kittenswap: https://kittenswap.org
• Prjx: https://prjx.finance

Learning Resources:

• Arbitrage basics: Investopedia, CoinDesk Academy
• DeFi arbitrage strategies: DeFi Pulse, Dapp University
• Bot development: YouTube (EatTheBlocks), Medium guides

Community:

• Hypertrade Discord: https://discord.gg/hypertrade
• Hypertrade Twitter: https://twitter.com/Hypertrade_xyz