Flash loans are the most desired way for cryptocurrency intra-traders to monetize with the stock in the promptly fluctuating crypto markets. It's hardly possible for humans to predict stock values and swap exchanges in crypto-trading. There comes a Flash loan arbitrage bot to make your job easier, These bots adopt a simple strategy that leverages the price differences between the two DEXs. Thereby, investors can effortlessly purchase a token through these assets at a low price in one DEX and sell those tokens on another DEX when their prices tremendously go into high rise. This makes more investors and entrepreneurs attain a profit through arbitrage trading.
Flash loan arbitrage bot is a decentralized application that is an automated software simply they are known as automated traders that predict the price inefficiencies between different exchanges or decorums in the DeFi ecosystem.
Usage of Arbitrage Bot - These bots undergo frequent scans of various crypto exchanges to find price discrepancies. Then these bots borrow flash loans without any collateral from any lending platform, which are repaid within the same transaction block. The execution of the arbitrage trade quickly borrows cheaper crypto and then successfully sells the crypto for higher profit and keeps the remaining amount as profit earnings.