How does DEX-CEX Arbitrage work?
A system compares executable DEX quotes against the CEX order book and sizes both legs. Many implementations pre-position assets on both venues because deposits and withdrawals are slower than the trading opportunity.
What should trading bot developers know about DEX-CEX Arbitrage?
The two legs generally cannot be committed atomically across a blockchain and a centralized exchange. Partial fills, exchange downtime, transfer constraints, and price changes create inventory and settlement risk.
Sources & further reading
Definitions are editorial summaries of the sources below. Protocol behavior and provider policies can change; consult the linked documentation for implementation details.