Monitoring DEX–CEX Order Book Spreads for Crypto Arbitrage
Summary
This article describes a monitoring system that compares order book prices across decentralized and centralized crypto exchanges. It groups configured exchanges by type, maps symbols that differ between venues, retrieves market precision, and requests depth data concurrently through REST interfaces. For each DEX–CEX pair, it reports two top-of-book price differences and displays the corresponding bid and ask prices and quantities. The examples cover shared spot markets and perpetual contracts.
The method is a data collection and observation tool for identifying potential hedge opportunities; it does not place trades or establish that a displayed spread is profitable. The article proposes later additions such as fee-aware thresholds, trading logic, and WebSocket data. Its sample implementation depends on a specific platform’s exchange wrappers and supported venues, and the described price differences do not account for fees, funding, execution costs, or order book depth beyond the top level.
Key ideas
- Concurrent REST requests can collect order book snapshots from several exchanges.
- Exchange-specific symbol mapping and market precision help align data across venues.
- Top-of-book differences can be displayed for each DEX–CEX combination.
- The monitor identifies price gaps but does not execute or validate an arbitrage trade.
- Fees, funding, execution costs, and deeper liquidity need separate analysis.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.