What Should Businesses Decide Before Developing a Flash Loan Arbitrage Bot?
Before developing a flash loan arbitrage bot, businesses should first decide where they want the bot to operate, which DeFi markets they want to target, and what type of arbitrage opportunities they intend to pursue. These choices directly influence the bot’s design and development cost.
It is also important to define the business model, capital requirements, acceptable risk levels, supported blockchain networks, and expected transaction volume. Businesses should consider gas fees, liquidity, slippage, smart contract reliability, and how quickly opportunities need to be detected and executed.
Rather than starting with technology, the better approach is to define the trading objective first. This gives the development team a clear direction and helps create a bot suited to the actual business strategy.
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