Arbitrage transaction #9
Description
When a user makes an arbitrage transaction, they pay two fees: the base fee and an extra tip. The base fee is for the regular transaction cost, while the tip is an additional payment to miners as an incentive for processing the transaction faster or prioritizing it.
Arbitrage is when someone takes advantage of price differences for the same asset in different markets. For example, if an asset (like Ether) is cheaper on one exchange than on another, a trader can buy it on the cheaper exchange and sell it on the more expensive one, making a profit from the price difference.
In Ethereum, arbitrage is important because it creates opportunities to profit from price differences between decentralized exchanges (DEXs) or between a DEX and a centralized exchange. These price differences can exist due to delays in updating prices or differing supply and demand on each platform.