Flash loan arbitrage bot is a decentralized application that is an automated software simply they are known as automated traders that predict the price inefficiencies between different exchanges or decorums in the DeFi ecosystem.
Usage of Arbitrage Bot - These bots undergo frequent scans of various crypto exchanges to find price discrepancies. Then these bots borrow flash loans without any collateral from any lending platform, which are repaid within the same transaction block. The execution of the arbitrage trade quickly borrows cheaper crypto and then successfully sells the crypto for higher profit and keeps the remaining amount as profit earnings.