How Do Arbitrage Bots Influence Activity on DEXs?

Snowy

Member
As decentralized exchanges (DEXs) grow, what role do arbitrage bots play in shaping market dynamics? Can these bots enhance liquidity by capitalizing on price differences across platforms, or do they introduce volatility that disrupts ordinary trading? How do arbitrage bots impact fees and slippage for regular users, and are they essential for maintaining efficient price discovery? With increased bot activity, will DEXs need to implement new strategies to balance automation with fair user experiences?
 
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