Arbitrage Bot
Coverage of Arbitrage Bot in the Nexus archive.
- Realistic or not? Bot-only arb volume as the sole driver of LP yield with a concentrated pegged pair
A developer presents a protocol for liquid-locked token derivatives and explores whether bot-only arbitrage activity can generate attractive LP yields on concentrated pegged pairs. The creator seeks validation on whether their $100k liquidity strategy ($50k concentrated in liTOKEN/TOKEN and $50k full-range in liTOKEN/WETH) can achieve 55-110% APR through bot arbitrage, and asks whether to include external routing options in their open-source bot template.
- Will Only Bot Activity Have Attractive Yield?
A protocol developer questions whether bot arbitrage activity can generate attractive yields on a liquid-locked derivative token pair. Testing on BASE with a memecoin showed minimal arbitrage activity ($1-3 trades) and only 1.1-1.5% APY with full-range liquidity, despite observing a 10% spread that no bot closed.