How Does High Transaction Latency (Slow Block Times) Hinder Arbitrage Effectiveness?

High transaction latency, or slow block times, hinders arbitrage effectiveness by increasing the risk that the price discrepancy being exploited changes before the arbitrageur's transaction is confirmed on the blockchain. The delay gives other market participants or bots time to front-run the trade or for the market to naturally correct the price.

This "execution risk" reduces the certainty of the arbitrage profit, making it less attractive and thus weakening the constant pressure needed to maintain the stablecoin's peg.