Why Is Transaction Speed Critical for Stablecoin Arbitrage?

Stablecoin arbitrage opportunities are often fleeting, lasting only seconds or milliseconds. An arbitrageur needs to execute a sequence of trades (e.g. buy stablecoin, burn for collateral, sell collateral) very quickly before other market participants or automated bots close the price gap.

Slow transaction speed (high latency) can lead to a missed opportunity or a loss.