Arbitrage and MEV in AMMs

This lesson is for enrolled learners

The concept AMM prices only stay accurate because arbitrageurs constantly correct them. If a pool's internal price drifts from the broader market (say, a large trade just pushed ETH to 2,950 in one pool while it trades at 3,000 everywhere else), an arbitrageur buys the underpriced asset from that pool and sells it elsewhere, pocketing the difference and, in the……

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