Can flash loan arbitrage bots be profitable in the long term?
Flash loan arbitrage bots can be profitable in the short term, but long-term success depends on continuous innovation in flash loan arbitrage bot development. As competition increases, identifying arbitrage opportunities becomes more challenging. To maintain profitability, developers must optimize bot speed, minimize transaction fees, and monitor multiple liquidity sources. Over time, markets become more efficient, which may reduce opportunities, making sustained profitability harder without constant adaptation and improvement in bot strategies.