Arbitrage helps keep STON.fi pool prices aligned with external market prices. When price differences appear between STON.fi and other venues, arbitrage participants swap until the prices converge. This process maintains overall market balance and helps users get fair and consistent swap rates.
While this benefits regular users by keeping prices accurate, it can slightly reduce short-term fee accrual for liquidity providers because 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 environment for LPs.