Arbitrage bots
Coverage of Arbitrage bots 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 describes a protocol for creating liquid-locked token derivatives and questions whether bot-only arbitrage activity can generate attractive LP yields on concentrated pegged pairs. The creator ran a small $1k test yielding 1-1.5% APY and projects potential 55-110% APR with $100k TVL if they can capture 5-10% of native token volume through bot trading.
- Can Bot Activity Alone Generate Attractive High Yield?
A developer questions whether bot arbitrage activity alone can generate attractive yields on a new liquidity protocol featuring 1:1 liquid-locked derivative tokens. After testing on BASE with a memecoin, they observed minimal arbitrage activity ($1-$3 trades) yielding only 1.1-1.5% APY despite spreads up to 10%, attributing this to bots not being customized for the new protocol.