> For the complete documentation index, see [llms.txt](https://thedogecapital.gitbook.io/dogeswap/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://thedogecapital.gitbook.io/dogeswap/how-it-works/arbitrage.md).

# Arbitrage

While DAWG efficiently acts as backing for NFTs in the pool, inefficiencies may still occur in outside marketplaces. We built DogeSwap to aggregate price data from all third-party markets which allows DAWG/DC holders the ability to leverage those inefficiencies that may occur elsewhere. 

We even took it a step further to highlight those arbitrage opportunities for our holders directly within the platform. 

<figure><img src="https://1751588362-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxecXzNGWQDTzi4SNlVM7%2Fuploads%2FmGVpvhZ0SZZzEHNkMZcn%2Fimage.png?alt=media&amp;token=32070609-91db-4b2d-8db1-af692da37762" alt=""><figcaption></figcaption></figure>

Potential Arbitrage Scenarios:

> **The price of DAWG in the Raydium pool is higher/lower than in the DogeSwap pool:**
>
> * If higher, holders can swap a Doge Capital NFT for DAWG in our pool, and sell the DAWG for USDC on Raydium; profiting the difference.&#x20;
> * If lower, holders can purchase DAWG on Raydium, and sell it at a higher value into the DOGESWAP pool, profiting the difference.

> **The price of Doge Capital NFT’s is higher/lower on NFT marketplaces than in the DogeSwap pool:**
>
> * If higher, holders can purchase an NFT from the DogeSwap pool and sell it on public marketplaces; profiting the difference.&#x20;
> * If lower, holders can purchase an NFT on the public marketplace, and sell it into the DogeSwap pool, profiting the difference.&#x20;

{% hint style="info" %}
By encouraging our holders to take advantage of arbitrage, not only are we creating opportunities of profit, but it also enforces greater price efficiency within DogeSwap itself.
{% endhint %}