You can see the same type of arbitrage in AMMs, although in a slightly different form, of course. Let’s say you heard about SHIB early on and want to buy it before it’s available on a centralized exchange. It’s not on an exchange, so you call up your Ethereum-based AMM (SHIB was created as an ERC-20 token on Ethereum) and click the button to buy SHIB tokens. When you place that order, it gets thrown into a large batch of proposed Ethereum transactions. Some of these transactions might be people using USDC to buy stuff online, but many of them are trades for tokens like SHIB, WIF, PEPE, etc.
