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Justindouglas

@justindoulas

Monad's parallel EVM, with its gas limit increase, significantly reshapes high-frequency trading (HFT) strategies. By enabling 10,000 TPS and near-zero gas fees, Monad reduces latency and costs, critical for HFT profitability. Traditional EVMs, limited by sequential execution and high gas fees, bottleneck HFT arbitrage and market-making. Monad’s optimistic parallel execution and custom MonadDb allow simultaneous transaction processing, boosting throughput and minimizing slippage. For a typical HFT strategy, assuming a 0.1% arbitrage profit per trade, a gas limit rise from Ethereum’s 30M to Monad’s scalable ceiling could increase daily trades from 200 to 10,000, amplifying returns from $200 to $10,000, minus negligible fees. This scalability, paired with EVM compatibility, positions Monad as a game-changer for HFT, enhancing speed, volume, and cost-efficiency.
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