How does arbitrage affect the stability of STON.fi pools?

Arbitrage helps keep STON.fi pool prices aligned with external market prices.
When price differences appear between STON.fi and other exchanges, arbitrage traders buy or sell until the prices converge. This process maintains overall market balance and ensures that users always get fair and consistent swap rates.

While this benefits regular users by keeping prices accurate, it can slightly reduce short-term returns for liquidity providers, since arbitrage swaps smooth out sharp price movements. In the long run, however, arbitrage plays a key role in keeping pools stable, improving pricing efficiency, and creating a more predictable earning environment for LPs.