Lasagne: A Suite of High-Profit Arbitrage Strategies for Blockchain-Based Decentralized Exchanges

Yifei Liang; Xiaohai Dai; Chenchen Li; Minrui Wu; Jiang Xiao; Keke Gai; Hai Jin

doi:10.1109/TCSS.2025.3560018

Lasagne: A Suite of High-Profit Arbitrage Strategies for Blockchain-Based Decentralized Exchanges

Yifei Liang, Xiaohai Dai^*, Chenchen Li, Minrui Wu^*, Jiang Xiao, Keke Gai, Hai Jin

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

Abstract

Sandwich arbitrage is a popular strategy for blockchain-based decentralized exchange (DEX) users to facilitate decentralized token exchanges and make profits. However, conventional Sandwich arbitrage only focuses on one big-deal transaction and executes arbitrary actions within an intrablock, leading to a huge loss of profit opportunities. In this article, we present Lasagne, a novel high-profit arbitrage strategy that allows the exploration of profit opportunities from multiple small-deal transactions across interblocks. Specifically, Lasagne involves a suite of novel strategies: fishing, bundle, and grid, each of which is tailored to a liquidity pool with diverse transaction frequencies and skewness. The experimental results demonstrate the superiority of Lasagne over a state-of-the-art sandwich in terms of feasibility and effectiveness.

Original language	English
Journal	IEEE Transactions on Computational Social Systems
DOIs	https://doi.org/10.1109/TCSS.2025.3560018
Publication status	Accepted/In press - 2025
Externally published	Yes

Keywords

Arbitrage
blockchain
DeFi

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10.1109/TCSS.2025.3560018

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title = "Lasagne: A Suite of High-Profit Arbitrage Strategies for Blockchain-Based Decentralized Exchanges",

abstract = "Sandwich arbitrage is a popular strategy for blockchain-based decentralized exchange (DEX) users to facilitate decentralized token exchanges and make profits. However, conventional Sandwich arbitrage only focuses on one big-deal transaction and executes arbitrary actions within an intrablock, leading to a huge loss of profit opportunities. In this article, we present Lasagne, a novel high-profit arbitrage strategy that allows the exploration of profit opportunities from multiple small-deal transactions across interblocks. Specifically, Lasagne involves a suite of novel strategies: fishing, bundle, and grid, each of which is tailored to a liquidity pool with diverse transaction frequencies and skewness. The experimental results demonstrate the superiority of Lasagne over a state-of-the-art sandwich in terms of feasibility and effectiveness.",

keywords = "Arbitrage, blockchain, DeFi",

author = "Yifei Liang and Xiaohai Dai and Chenchen Li and Minrui Wu and Jiang Xiao and Keke Gai and Hai Jin",

note = "Publisher Copyright: {\textcopyright} 2014 IEEE.",

year = "2025",

doi = "10.1109/TCSS.2025.3560018",

language = "English",

journal = "IEEE Transactions on Computational Social Systems",

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T2 - A Suite of High-Profit Arbitrage Strategies for Blockchain-Based Decentralized Exchanges

AU - Liang, Yifei

AU - Dai, Xiaohai

AU - Li, Chenchen

AU - Wu, Minrui

AU - Xiao, Jiang

AU - Gai, Keke

AU - Jin, Hai

PY - 2025

Y1 - 2025

N2 - Sandwich arbitrage is a popular strategy for blockchain-based decentralized exchange (DEX) users to facilitate decentralized token exchanges and make profits. However, conventional Sandwich arbitrage only focuses on one big-deal transaction and executes arbitrary actions within an intrablock, leading to a huge loss of profit opportunities. In this article, we present Lasagne, a novel high-profit arbitrage strategy that allows the exploration of profit opportunities from multiple small-deal transactions across interblocks. Specifically, Lasagne involves a suite of novel strategies: fishing, bundle, and grid, each of which is tailored to a liquidity pool with diverse transaction frequencies and skewness. The experimental results demonstrate the superiority of Lasagne over a state-of-the-art sandwich in terms of feasibility and effectiveness.

AB - Sandwich arbitrage is a popular strategy for blockchain-based decentralized exchange (DEX) users to facilitate decentralized token exchanges and make profits. However, conventional Sandwich arbitrage only focuses on one big-deal transaction and executes arbitrary actions within an intrablock, leading to a huge loss of profit opportunities. In this article, we present Lasagne, a novel high-profit arbitrage strategy that allows the exploration of profit opportunities from multiple small-deal transactions across interblocks. Specifically, Lasagne involves a suite of novel strategies: fishing, bundle, and grid, each of which is tailored to a liquidity pool with diverse transaction frequencies and skewness. The experimental results demonstrate the superiority of Lasagne over a state-of-the-art sandwich in terms of feasibility and effectiveness.

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KW - DeFi

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DO - 10.1109/TCSS.2025.3560018

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JO - IEEE Transactions on Computational Social Systems

JF - IEEE Transactions on Computational Social Systems

ER -

Lasagne: A Suite of High-Profit Arbitrage Strategies for Blockchain-Based Decentralized Exchanges

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Keywords

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