Arbitrage Analysis Of Stablecoins On Jupiter

Jupiter, as a dex aggregator, it provides opportunities where one can take advantage of liquidity pairs across the ecosystem to create arbitrage. Here we can see how the swaps (with at least $100) between wallets that start with USDC or USDT and end with either USDC or USDT have resulted in at least a 1% gain since February 1st. In addition, they can see any patterns behind the most common arbitrage sources on Jupiter. And also, list the top 10 wallets by total arbitrage gains.

What is Jupiter?

In addition to Jupiter being the first on-chain swap aggregator, Jupiter is a key liquidity aggregator for Solana, offering the most tokens and the best routes between any token pair. In addition to providing the best rates, Jupiter’s main objective is to deliver the best swapping experience for all users and developers across the entire DeFi ecosystem. Because of the high transaction speed of Solana, swap aggregation actually works extremely well.

Here in this analysis, we were only taking into account swaps in which the swapped from USDC/USDT amounts and swapped to USDC/USDT amounts were both greater or equal to 100. Furthermore, we considered the swaps in this analysis to at least have earned a 1% gain since February 1st 2022.

Graph below shows the unique wallets of all the pairs that we have seen so far in this article. Out of all of these pairs, the pair USDC->USDC is the one that contributes the most (54.51%). There was a maximum number of 42 unique wallets observed on February 4th, 2022. Overall, Unique Wallets are showing a decreasing trend.

The pair USDC->USDC makes up the largest proportion of all transactions here (84.55%). The highest number of transactions, 675, was observed in February 2, 2022. There is a downward trend in transactions.

Here from the below graph we can see the total arbitrage gain amount in USD on daily basis from Feb1st 2022 onwards.Here more than 95% of total arbitrage gain amount in USD was contributed by  USDC->USDC pair.

Here from the below graph we can see the average arbitrage gain amount in USD on daily basis from Feb1st 2022 onwards.Here, USDC->USDC accounted for 59.9% of the average arbitrage gain in USD. Following that, USDT->USDT came in second. 

We can see from the below graph that a more average arbitrage gain percentage was accomidated by USDC->USDC, which was almost 39.6%. Percentage of average arbitrage gains indicates a downward trend

Note : An arbitrager buys an asset in one market and sells it in another at a different price, attempting to reap the benefits of price differences.  The majority of investors use arbitrage to increase their return within a short period of time. A large volume of assets takes a short period of time to give a good amount of profit.

As we can see from this graph, the Top 10 wallets are ranked according to their total arbitrage gains by transactions. We can see the top 10 wallets of each pair according to their transactions here for all 4 pairs. Among all four pairs, USDC->USDC has the highest contribution (85.36%).

As we can see from this graph, the Top 10 wallets are ranked according to their total arbitrage gains by amount. We can see the top 10 wallets of each pair according to their transactions here for all 4 pairs. Among all four pairs, USDC->USDC has the highest contribution (95.8%).

  • Based on the above analysis, we can see the stablecoin pair USDC->USDC is showing more unique wallets and transactions since February 1, 2022. Additionally, it is also a top performer in all other ways. There are the following: Daily total arbitrage gain amounts in USD, average arbitrage gain amounts in USD, and average arbitrage gain amounts percentages in USD for the period indicated. Among all these swap pairs, we can say USDC->USDC has been very active in this period.
  • In terms of total arbitrage gain by transactions, the most significant contributor is USDC->USDC among the top 10 wallets. Almost 85.36 percent is contributed by USDC->USDC.
  • Of the top 10 wallets in terms of amount earned through arbitrage, USDC->USDC contributes the most. About 95.8% of the amount is earned through USDC->USDC.

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