CRJun 29, 2021

Jack The Rippler: Arbitrage on the Decentralized Exchange of the XRP Ledger

arXiv:2106.16158v2
AI Analysis

This addresses the challenge of capitalizing on price inefficiencies in decentralized exchanges for traders, but it appears incremental as it applies existing arbitrage concepts to a specific platform.

The authors tackled the problem of identifying and exploiting arbitrage opportunities on the XRP Ledger's decentralized exchange by developing a bot called Jack the Rippler, which automates the process to potentially generate profits, though no concrete performance numbers are provided.

The XRP Ledger (XRPL) is a peer-to-peer cryptographic ledger. It features a decentralized exchange (DEX) where network participants can issue and trade user-defined digital assets and currencies. We present Jack the Rippler, a bot that identifies and exploits arbitrage opportunities on the XRPL DEX. We describe Jack's arbitrage process and discuss risks associated with using arbitrage bots.

Foundations

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