📈Trading & Arbitrage

As a trader

Volatility farming by definition:

Pools are designed to drift from their peg during market activity. When price discrepancies emerge:

  • Traders perform arbitrage to restore parity.

  • Every arbitrage action incurs a small protocol fee.

  • The arbitrage engine becomes a yield-generation mechanism, not just a price stabilizer.

This is where Leveraged Volatility Farming (LVF) enters: protocols and advanced users can stack volatility exposure to earn amplified fees when price activity spikes.

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