@ryanwlkfhj
Large Uniswap swaps also change the pool’s pricing curve, attracting arbitrageurs who buy on other venues and sell into the pool or vice versa, which can temporarily cascade price moves across venues. If the pool’s TVL is small relative to external liquidity, arbitrageurs will quickly normalize cross-market spreads, amplifying volatility during the normalization process. For traders, watching on-chain arbitrage flows and cross-pair spreads reveals whether a large Uniswap trade will produce a transient spike or a more persistent repricing event.
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