peterkester96
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Flash Loan Arbitrage Bot vs. Other DeFi Bots: Which is Right for You?
DeFi bots come in various flavors—market-making bots, yield farming bots, and liquidation bots, to name a few. Here’s how a flash loan arbitrage bot stacks up:
DeFi bots come in various flavors—market-making bots, yield farming bots, and liquidation bots, to name a few. Here’s how a flash loan arbitrage bot stacks up:
| Feature | Flash Loan Arbitrage Bot | Other DeFi Bots |
| Capital Requirement | No upfront capital (uses flash loans) | Often requires initial capital |
| Profit Potential | High (leverages large sums for arbitrage) | Varies (depends on strategy) |
| Speed | Blazing-fast (executes in one transaction) | Moderate to fast |
| Complexity | High (requires smart contract expertise) | Moderate to high |
| Risk | Moderate (must repay loan in same transaction) | Varies (market or liquidation risks) |
