• Academy
  • Blog
  • FAQ

Back

15 Nov 2022
For Beginners

I Added Liquidity & Got Arbitraged... What Happened?

Learn more about arbitrage within liquidity pools on Sushi

  • Samurai.jpg
    Samurai
Copy

If you enter a liquidity pool with an incorrect ratio between the two tokens you provide, you are at risk of arbitrage. This can be either due to a liquidity pool being seeded and priced incorrectly, or due to you adding liquidity with an incorrect weighting of the assets.

This will cause you to โ€œsellโ€ your tokens under its proper price point, which will result in you losing significant value on your position. There are bots always searching for opportunities like this; to ensure this does not happen, it is always recommended to inspect the pair of the pool you wish to enter through analytics first or be extra attentive when you enter the initial seeding of your pool.


Exchange | Furo | Docs | Discord | Twitter | Telegram | Newsletter | YouTube | Github

Similar Articles
For Technical Users

Removing from the Block Explorer: Trident

How to remove old Trident positions from the explorer.

19 Sep, 2024

Tutorial: Limit Orders and Dollar-Cost Averaging (DCA)
For Beginners

Tutorial: Limit Orders and Dollar-Cost Averaging (DCA)

Welcome to our guide on Limit Orders and Dollar-Cost Averaging (DCA)!

21 Aug, 2024

FAQ: Limit Orders
For Beginners

FAQ: Limit Orders

Everything you need to know about Sushi Limit Orders

20 Aug, 2024