Cryptocurrency arbitration consists in taking advantage of the price differences from the same crypto on different platforms and blockchains. Today, with the emergence of Layer 2 of Ethereum and the low costs they offer, the possibilities of arbitration are multiplying. Find out how to take advantage of these opportunities in a few clicks.
This article is presented to you in commercial collaboration with Kryll (learn more))
Why is crypto arbitration interesting?
Arbitration allows you to benefit from price differences in the same cryptocurrency between different markets (centralized exchange platforms, decentralized swap applications, peer to peer market, etc.).
Several factors make this practice particularly advantageous:
- Rapid benefits : When the course varies slightly from a blockchain or from an exchange to the other, an investor can buy at the lowest price, then resell at the highest to quickly collect the difference;
- Low risk : Compared to other trading strategies, arbitration does not imply bet on an upward or downward trend. The investor simply takes advantage of the price discrepancy, regardless of global fluctuations;
- More opportunities on Layer 2 : Layer 2 like Arbitrum, Optimism or Base offer reduced Gas costs and faster confirmations of transactions. This makes it possible to circulate tokens between different networks without starting the profits too much.
Despite these advantages, the arbitration strategy remains limited: it is particularly effective when has sufficient capital in order to achieve large volumes, because price differences are generally limited.
In addition, bots specializing in arbitration are increasingly present. Their action tends to quickly fill the price differences in cryptocurrency, reducing the opportunity window for private traders.
Are you interested in crypto arbitration? Find out how to proceed through the example of Kryll token KRL
Example of arbitration with the KRL token of Kryll³
At the end of March 2025, following a voting from the DAO, Kryll deployed his token KRL on several Layer 2 of Ethereum: Base, Optimism and Arbitrum. This extension multiplies the access points to the KRL, making possible new arbitration strategies between networks.
Try Kryll³ for free: the crypto assistant fed by AI
Advertisement
Before tackling the specific KRL examples, it is important to understand how bridges (bridges) work on Metamask work.
Indeed, the Crypto Metamask portfolio natively integrates bridges allowing to easily transfer tokens from one blockchain to another. Instead of having to use several specialized applications for each network, you can carry out these operations directly from the Metamask interface.
Here are the steps to follow for Bridge the crypto of your choice on Metamask:
- Connect to Metamask and click the “Pont” button;
- Select the original network and the token to be transferred. Example: Eth on Ethereum;
- Select the destination network and the token to be transferred. Note that it is possible to select another token so that the bridge includes a swap;
- Enter the quantity to send so that Metamask displays the different options available;
- Choose the option recommended by Metamask (the least expensive in costs) or click on “More quotes” to see other options;
- Finally, click on “Submit” to confirm the transaction;
- Once the transaction is carried out, you can then interact with your cryptos on the new destination blockchain.
Now let's move on to our concrete arbitration example with the KRL of Kryll³.
From a Metamask portfolio, it is therefore possible to move KRL tokens from the Ethereum network to that of arbitrum and then resell these KRLs on a dex where the price is higher. The opposite operation (repatriate to an L2 where the token would be cheaper to buy it again) is also possible.
Here are 2 examples of arbitration of the KRL token from Metamask:
- Base → Arbitrum
- Here, we send 330 krl from Base to Arbitrum and we receive 337.3 Krl on the arbitrum side;
- Network costs amount to around $ 0.01, while bridge costs are 0.875 % (included in the calculation);
- This arbitration makes it possible to recover 7 additional KRL tokens or $ 2.15 to write these lines (April 1, 2025).
- Ethereum → Arbitrum
- Here, we send 4,000 krl from Ethereum to Arbitrum and we receive 4,308 krl on the arbitrum side;
- Network costs are around $ 2.74, and again, bridge costs of 0.875 % are taken into account in the estimate;
- This arbitration makes it possible to recover an additional 308 KRL tokens, $ 100 for writing these lines (April 1, 2025).
These examples show how simple it is to execute an arbitration of a crypto between Layer 2 thanks to the official bridge of Metamask.
What is Kryll³ and what is his KRL token for?
Kryll³ is an innovative crypto research and analysis platform, supported by Google, which combines artificial intelligence (AI) and advanced tools to help investors make informed decisions.
Learn more about the Kryll³ platform and its features
The Kryll³ AI assistant automates the DYOR (Do Your Own Research) by analyzing market trends, identifying investment opportunities and providing real -time insights.
Try Kryll³ for free: the crypto assistant fed by AI
Advertisement
At the center of this ecosystem, we find the KRL, a utilitarian token that plays several roles:
- Premium access to the advanced features of the platform (IA analyzes, trading signals, etc.);
- Reduction of costs on Kryll³ services (subscriptions, research tools, etc.);
- Participation in DAO votes to influence Kryll³ development;
- Rewards for active users and KRL holders (Staking, Airdrops, etc.).
In addition, thanks to its deployment on several Layer 2 of Ethereum (arbitrum, optimism, base), KRL holders benefit from reduced transaction costs, can benefit from arbitration opportunities and access more liquidity by trading the KRL on several Dex.
This cross-chain expansion of the Kryll³ token is only a step in the mission of Kryll³, which aims to:
- Continuously improve its IA features : The intelligent assistant is regularly enriched, in particular thanks to the introduction of new tools such as X-Ray, Gem Detector and Harpoon;
- Tie strategic partnerships : By wearing links with other major actors in crypto and AI, Kryll³ wishes to extend its ecosystem and offer more services;
- Become the reference for the dyor : Kryll³'s objective is to establish itself as the essential platform for the analysis and exploration of Crypto projects, thanks to a complete and accessible approach.
Follow all Kryll³ news on X
This article is published as part of a commercial collaboration. Cryptoast has done prior research on the products or services presented on this page but could not be held responsible, directly or indirectly, by any damage or loss caused following the use of a property or service put forward in this article. Investments linked to cryptocurrencies are risky by nature, readers must do their own research before undertaking any action and investing only within the limits of their financial capacities. This article does not constitute an investment advice.
The crypto newsletter n ° 1
Receive a summary of crypto news every day by email
Certain links present in this article may be affiliated. This means that if you buy a product or register on a site from this article, our partner gives us a commission.
Investments in cryptocurrencies are risky. There is no guaranteed high yield, a product with high performance potential implies a high risk. This risk taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital