Recently, I’ve been researching the points system on Lighter, this decentralized exchange, and discovered several good arbitrage strategies.

There are mainly four approaches you can take: first, cross-platform hedging, arbitraging price differences between different exchanges; second, spot-futures linkage, leveraging the price difference between contracts and spot; third, betting on the exchange rate fluctuations between BTC and ETH; fourth, hedging opportunities in the forex market.

The benefit of these methods is that while you earn points, you can avoid being harvested by automated bots on centralized platforms. After all, operating on-chain gives you more control. For those who want to get deeply involved in DeFi while managing risk, this combination of strategies is quite practical.