Arbitrage Strategy: Price Difference Capture**

1. **On-Chain Triangle Arbitrage**

- **Mechanism**: Utilize price deviations among three trading pairs (e.g., A/B, B/C, C/A) for circular trading arbitrage. For example, in the path A→B→C→A, if P1×P2×P3>1 (after deducting fees), profit can be made.

- **Challenges**: Requires real-time price difference calculation + low slippage execution, relying on high-speed algorithms and low Gas chains (e.g., Solana).

2. **High-Frequency Cross-DEX Arbitrage**

- **Core**: Capture price differences of the same token across different DEXs (e.g., Uniswap vs Sushiswap).

- **Executor**: Professional institutions (e.g., Jump Trading) deploy algorithms to execute “buy low, sell high” in milliseconds.

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### ⚙️ **Three, Automated Strategies: Passive Income Generation**

**Decentralized Grid Trading (represented by DeGate)**

- **Principle**: Set a series of buy/sell grid orders within a predefined price range (e.g., ETH/USDC: $1800-$2300), automatically buying low and selling high during price fluctuations.

- **Strategy Variants**:

- **Sideways Market**: Regular grid (two-way orders);

- **Down Market**: Buy order grid (averaging down);

- **Up Market**: Sell order grid (taking profit gradually).

- **Technical Breakthrough**: DeGate solves the efficiency problem of multi-order signing in a decentralized environment through “first order signature authorization,” allowing users to initiate the entire strategy by signing just the first grid order.