Gas fees are a significant factor in flash loan crypto arbitrage. The fees paid to miners or validators for processing transactions on blockchain networks like Ethereum can drastically reduce profits. Flash loan arbitrage relies on quick, efficient trades, and if gas fees are high, they may exceed the potential profit from the arbitrage opportunity. Optimizing gas fees is a key consideration for arbitrage bots. Bots typically monitor network congestion and adjust transaction timing or settings to minimize costs. On networks like Ethereum, during peak times, gas fees can spike, which might make it unprofitable to execute arbitrage strategies.
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