What is Flash Arbitrage?

Unlike other DEXs, ACY Swap helps you prevent MEV bots from front-running your trades by integrating an innovative flash arbitrage feature with the regular crypto swap function.

What is MEV？

pageWhat is MEV?

What is Flash Arbitrage?

Flash Arbitrage is a protocol level integrated arbitrage strategy to help us fight against Miners. Our smart contract will split user's swap transaction into multi-route arbitrage transaction inside the same swap transaction. Users can then automatically profit from the arbitrages, enjoy the lower price slippage and more stable price. Without big enough arbitrage opportunities, arbitragers including the miners' bots will be disinterested in swap transactions from our platform.

What's more, Flash Arbitrage is executed using a mathematical model to calculate the most optimal routes during runtime, aka during transaction execution. Unlike 1inch and other platforms where they calculate the routing solutions before they do the swap transaction, ACY Finance has no delay and is more accurate for its protocol level implementation of the algorithm.

Instead of the direct exchange for the target token by users, the ACY contract is automatically split into multiple paths to exchange the target token. The liquidity equivalent to this exchange is the sum of the liquidity of all relevant paths, which can help users obtain arbitrage gains and greatly reduce the trading slippage.

A visual explanation can be seen in the following Figure where when an user wants to swap from X token to Y token, our methematical model will calculate how much X will go through X->Y, and how much X will go through X->Z->Y to conclude the transaction.

The extra income that is earned from Flash Arbitrage will be distributed to All users and ecosystem, More details here.

Regarding of Methematical Details of Flash Arbitrage, Please check out our whitepaper.