---
title: Reinforcement Learning for Arbitrage in Decentralized Exchanges
url: https://www.ml-quant.com/papers/ssrn/4708173/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4708173
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4708173
featured: 2024-01-30
citations: unknown
topic: Trading, Microstructure & Execution
---


# Reinforcement Learning for Arbitrage in Decentralized Exchanges

The article presents a game-theory model to explain the tactics of various players in decentralized exchanges with automated market makers.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4708173
- Identifier: SSRN 4708173
- Released: 2023-12-20
- First featured: Quant Letter No. 35 (2024-01-30): https://www.ml-quant.com/issues/2024-01-30/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Trading, Microstructure & Execution

## Related

- [An arbitrage driven price dynamics of Automated Market Makers in the presence of fees](https://www.ml-quant.com/papers/arxiv/2401.01526/): The article introduces a model for price dynamics in Automated Market Makers, suggesting a reference market price and deriving several analytical results about its behavior using local times and excursion-theoretic methods.
- [Deep reinforcement learning for arbitrage in decentralized exchanges](https://www.ml-quant.com/papers/ssrn/4666504/): The study explores trading performances under arbitrage conditions in decentralized exchanges, using a simulation model and deep reinforcement learning to determine optimal arbitrage strategies for eight cryptocurrency pairs.
- [Layer 2 be or Layer not 2 be: Scaling on Uniswap v3](https://www.ml-quant.com/papers/arxiv/2403.09494/): The paper finds that cheaper, faster chains improve Uniswap v3 Protocol's performance and profitability, and suggests that issues with Automated Market Makers may stem from chain dynamics.
- [Optimal Design of Automated Market Makers on Decentralized Exchanges](https://www.ml-quant.com/papers/arxiv/2404.13291/): The study presents a model for ideal liquidity provision in automated market makers, indicating that exchange rate volatility increases the optimal transaction fee and the pricing formula is tied to the performance of underlying assets.
- [Multiblock MEV opportunities&protections in dynamic AMMs](https://www.ml-quant.com/papers/arxiv/2404.15489/): The study investigates the risk of multi-block MEV attacks in dynamic weight market making, proposing new protections supported by numerous simulations.
- [Price-Aware Automated Market Makers: Models Beyond Brownian Prices and Static Liquidity](https://www.ml-quant.com/papers/arxiv/2405.03496/): Advanced Models: The article presents models for improving quotes in automated market making platforms, considering complex price changes and demand fluctuations.