Arbitrage 80/20

80/20 BAL/ WETH Pool In-Given-Price problem and solution

Example

We will utilize our 80/20 BAL / WETH pool (0.05% Swap fee) as a benchmark and will assume the external market spot price to be 0.00455 WETH / BAL. Please note this market for the purpose of the example is considered infinite in depth. This means as we sell our tokens, the price is not impacted.

If the trade was occurring from one pool to another further optimization would be done to justify our swap. The method would then also consider the impact of the arbitrage opportunity on the second market we interact with.

Pool (Wo / Wi)	WETH Balance (Bi)	BAL Balance (Bo)
80/20	6,005.3009	5,315,514