Problem & Solution
Problem
Arbitrage presents both benefits and challenges to the DeFi ecosystem. Participants include individual users, institutional investors, market makers, automated trading systems, and arbitrage bots. Notably, arbitrage bots captured over $650 million in profits from Miner Extractable Value (MEV) in 2023 alone.
While arbitrage bots contribute to market efficiency by correcting price discrepancies, they primarily operate with concentrated private liquidity, which excludes the average DeFi user from these opportunities. Additionally, regular users face significant barriers, such as the complexity and technical expertise required to deploy arbitrage bots. Moreover, users are often frontrun, sandwiched, and subjected to other forms of MEV bot attacks, further disadvantaging them in the market.
Current market makers and arbitrage bots are also failing to deliver efficient execution of price balances due to limited liquidity and scalability opportunities. This inefficiency not only impacts the broader market but also reinforces the exclusion of regular users from profitable arbitrage opportunities.
Solution
To democratize access to arbitrage opportunities, Arbix provides an omnichain automated arbitrage vaults that operate autonomously with users' liquidity. This eliminates barriers to entry for regular DeFi users, while enabling access to a way deeper liquidity that will be growing organically with yield generated.
It's important to highlight that market makers and private liquidity remain limited, creating exploitable gaps in price efficiency, particularly in the realm of cross-chain arbitrage, which demands substantial liquidity across operational chains. These limitations present Arbix with significant potential for nearly unlimited scaling, as it can seamlessly expand its liquidity pools to meet growing market demands. Furthermore, Arbix addresses additional market opportunities, including the optimization of permanent chain liquidity flows and strategic collaborations with market makers, positioning itself as a key player in the evolving DeFi landscape.
With Arbix, not only is the accessibility of arbitrage enhanced, but the platform also paves the way for greater market efficiency and liquidity optimization, offering a sustainable and scalable solution to the challenges faced by the current DeFi ecosystem.
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