Recently, many liquidity miners have been complaining about a phenomenon: after finally investing funds into liquidity pools to earn fees, over half a year, the tokens have become fewer and the value in USDT terms has actually lost money.

At first glance, this is what is called "impermanent loss," which seems to be related to market fluctuations. But a deeper analysis of on-chain data reveals that the real "culprit" is something else—arbitrage bots systematically siphoning off LP profits through time difference exploitation.

The scenario is as follows: whenever the price on centralized exchanges changes, the oracle on the DEX responds a beat late. During this gap, high-frequency bots step in—buying low and selling high—quickly draining the fees you've painstakingly earned. Essentially, your price update mechanism is too slow, turning your system into an automatic ATM for arbitrageurs.

This is also why some projects are starting to upgrade their oracles. Instead of passively waiting for scheduled updates, they opt for proactive measures. They adopt a "push + pull" dual-mode system—using push updates daily to maintain on-chain state; but when off-chain prices fluctuate sharply, the system automatically pulls the latest quotes at the moment a trade is initiated.

The brilliance lies in this mechanism: price updates and trade executions happen within the same block, completely closing the time difference window for bots. Coupled with a hybrid off-chain calculation and on-chain verification approach, the defense system is quite robust, leaving arbitrageurs with no room to breathe.