A flash loan arbitrage bot works by identifying price differences for the same cryptocurrency across multiple exchanges. It borrows funds through a flash loan, buys the asset at a lower price on one exchange, and sells it at a higher price on another—all within a single transaction. The loan is repaid instantly, and the profit is retained. In flash loan arbitrage trading bot development, the focus is on optimizing this process for speed and efficiency, ensuring profitable trades with minimal risk.
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