How to do arbitrage on OpenOcean BSC
We will use the BAKE/BNB case as an example to introduce the arbitrage between DEXes and CEXes. OpenOcean finds the best price for BAKE/BNB is 0.000445, meanwhile the BAKE/BNB price on Binance is 0.0005. The price difference is making room for arbitrage.
Preparations before arbitrage
    1.
    Know about how to do Swaps on OpenOcean
    2.
    Install MetaMask Wallet and create an account and Connect MetaMask Wallet to OpenOcean BSC chain
    3.
    Have a CEX account
User-guide for arbitrage
    1.
    Visit OpenOcean website - https://openocean.finance/classic and select BSC network.
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2. Observe the P2P price difference between CEX and OpenOcean, and target to find currency pairs with relatively large difference.
For example, OpenOcean finds the best price for BAKE/BNB is 0.000445, meanwhile the BAKE/BNB price on Binance is 0.0005. The price of BAKE is relatively better compared to BNB on OpenOcean while the price of BNB is relatively better compared to BNB on Binance. That means there is room for arbitrage.
3. Buy BAKE with 10 BNB on Binance and get 22471 BAKE after transaction fee.
4. The best situation is that users already hold BAKE in their wallet. They don’t need to transfer from CEX to DEX. There is no time difference for trading. If there is no BAKE in wallet, the user needs to transfer from Binance account to their MetaMask Wallet. They get 22467.18个BAKE after gas and transaction fee.
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5. Swap 22467.18 BAKE to BNB on OpenOcean through MetaMask wallet.
6. Excluding gas fee, the user gets 10.0761 BNB (there was 0.2 BNB in wallet before transaction). OpenOcean does not charge protocol fee for transactions.
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7. The net gain of this transaction is 0.0761 BNB and the profit margin is 0.761%。The arbitrage can be done on a rolling basis according to the volatility of the market.
Last modified 2mo ago
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