Yes, it absolutely can—if you understand what you’re building for.Crypto arbitrage bots have traditionally thrived in centralized exchange environments where order books are easier to access, but things are shifting. With the rise of automated market makers (AMMs), arbitrage opportunities on DEXs have become more frequent, not less.
Prices on different places like Uniswap, SushiSwap, PancakeSwap, and Curve are always different because the money is spread out and there's no single price controller.
Your bot needs to be quick and find these price differences before others do. This means you need good information from the blockchain and cheap ways to make transactions.
A recent study by Flashbots showed that most arbitrage profits on Ethereum come from DEX platforms. Bots that use MEV logic and bundling do better, especially when prices change a lot. Timing is super important.
If you have the plan to go for crypto arbitrage bot development, concentrate on these three things:
- Getting prices in real-time from many DEXs.
- Grouping transactions to avoid being front-running risks.
- Smart gas optimization to ensure profitability even on small spreads.
Basically, arbitrage bots can do very well on DEXs, but it depends on how well your bot fits into the DeFi system. Make it fast, visible, and cheap to use. Consider partnering with the best crypto arbitrage bot development company to create bot solutions that work better on DEX platforms.