Date of Award


Document Type


Degree Name

Doctor of Philosophy (PhD)



Committee Chair/Advisor

Dr. Gerald P. Dwyer

Committee Member

Robert Tamura

Committee Member

Michal M. Jerzmanowski

Committee Member

Aspen Gorry


We examine the trades data and order book from 13 exchanges to study the arbitrage opportunities in stablecoins. Using snapshots of the order book data, we find that occasional prices far from the arbitrage-free prices (flash crashes) are real. Flash crashes invariably are associated with unusually large aggregate trading volume. We also examine arbitrage profitability and fee structure for stablecoin-USD and stablecoin- stablecoin. Our results show that after subtracting fees, there are still positive arbitrage profits. We also compare the efficiency of Decentralized Exchanges (DEXs) and Centralized Exchanges (CEXs). Our results are consistent with DEXs and CEXs being equally efficient.

Available for download on Wednesday, November 30, 2022