Arbitrage Bot
Also known as: Crypto Arbitrage Bot, DeFi Trading Bot, MEV Bot
An automated trading script that exploits price discrepancies across exchanges or blockchains to generate profit.
An arbitrage bot is an automated trading tool that detects and exploits price differences of the same asset across multiple platforms, such as DEXs, CEXs, or Layer 2s. In the blockchain space, arbitrage bots play a critical role in market efficiency but can also contribute to network congestion and frontrunning. Common forms include triangular arbitrage, cross-chain arbitrage, and MEV-based strategies. These bots often operate at high speed, leveraging flash loans and sophisticated routing algorithms. While profitable, arbitrage bot competition is fierce and requires deep technical and financial acumen.