Does a High Slippage Tolerance Also Increase the Risk of a Simple Arbitrage Trade?
No, a high slippage tolerance does not increase the risk of a simple arbitrage trade. Arbitrage is a distinct activity that corrects price discrepancies between different venues.
The slippage tolerance only dictates the acceptable price range for a trade on a specific DEX pool. A high tolerance simply means the trade is more likely to execute, even if the price has been moved by an external arbitrage trade, but it does not inherently increase the risk of the arbitrage itself.
