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What Is the Role of Decentralized Exchanges (DEXs) in Stablecoin Arbitrage?

DEXs provide the liquidity and trading venue for arbitrageurs to exploit price differences between the market and the protocol.
Greeks.Live22.11.25

What Is the Role of Decentralized Exchanges (DEXs) in Stablecoin Arbitrage?

DEXs provide the primary venue for stablecoin arbitrage. They allow users to quickly swap between the stablecoin, the volatile governance token, and other assets.

Arbitrageurs use the price discrepancies between the DEX and the stablecoin protocol's internal mechanism to execute trades. The liquidity pools on DEXs are crucial for the speed and profitability of these arbitrage opportunities.

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