ARBITRAGE ON PULSE

How Arbitrage Bots Work with Printer Tokens

Arbitrage activity may affect token prices across PulseChain whenever a token trades across two or more liquidity pools with different relative pricing.

Example:
REMEMBER/PLS v2 and REMEMBER/pDAI v2

In general, arbitrage activity observes price differences between pools and may execute transactions that bring pricing closer together across available routes. These transactions may occur when price differences, fees, and available liquidity make the route executable.

For example, assume three stable assets are each intended to track the same reference value.

Example liquidity pools:
1 USDT / 1 USDC  (1:1)
1 USDT / 0.5 eDAI  (2:1)

If one pool reflects a materially different price than another, arbitrage activity may interact with both pools in sequence. This can affect balances, ratios, and execution prices across the connected pools.

HOW THIS RELATES TO PRINTER TOKENS

Printer token contracts may hold token balances and execute contract-defined actions under specified conditions.

When these contracts interact with liquidity pools, arbitrage activity may influence pricing, pool ratios, and transaction outcomes across connected markets.