Bancor DAO Proposes Self-arbitrage Bot Reduce The Deficit

Bancor DAO is contemplating creating a self-arbitrage bot to benefit from possibilities on its protocol to alleviate the platform’s $26 million shortfall.

The proposal proposes the development of a Bancor Fast Lane arbitrage bot. This bot will scan all accessible Bancor pools for arbitrage opportunities, which profit on price disparities in the same trading pair across multiple markets.

Before doing the arbitrage deal, the bot’s contract will launch a flash loan, necessitating the creation of a new contract.

According to the plan, Bancor DAO users who detect these beneficial deals will get a 10% finders fee. The charge, however, will be limited to 100 bancor tokens (BNT).

Bancor‘s bot will compete with other arbitrage bots crawling the various liquidity pools and extracting value from the protocol.

Bancor DAO intends to offer its own bot a competitive edge by exempting it from transaction costs that third-party bots must still pay. The team might also upgrade the Bancor v3 contract to enable the bot to work.

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