From cd929cd1fe9b965cf946eee40cf1174f5a2f6c9c Mon Sep 17 00:00:00 2001
From: "Dr. Mia von Steinkirch"
 <1130416+F4DELEGATECALL@users.noreply.github.com>
Date: Sun, 16 Oct 2022 12:20:15 -0700
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 arbitrage/README.md | 7 +++++++
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 <br>
 
+
+* liquidity on-chain is fragmented: there are thousands of uniswap-like pools that don't communicate with each other, each providing quotes for swapping assets in real time. fragmented liquidity creates opportunity to buy low and sell high accross different pools.
+
 * arbitrage refers to the simultaneous buying and selling of tokens in different markets 
 in order to take advantage of price discrepancies of that asset.
 
 * the simplest MEV opportunity: two DEXes offering a token at two different prices, someone can buy the token on the lower-priced DEX and sell it on the higher priced DEX in a single atomic transaction.
 
+* atomicity is what makes things different in defi: the blockchain's state updates on a block-by-block basis, which means that a tx can perform multiple actions, provided that the end state of the tx is correct (flash loans)
+
+* most of the atomic arbitrage space is dominated by a few addresses, who land most of the profitable arbs. this is a very competitive space, and success is derived from a mixture of cleverness, low latency and good infrastructure.
+
 <br>
 
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