# Trading & Arbitrage

#### Volatility farming by definition:

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

* The protocol performs arbitrage for users, 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.