arXiv Machine Learning By Adam Khayam, Hamid Kolli, Mohamed Iguernalala, \c{C}agdas Bozman

If It Walks Like an Arbitrage: Protocol-Agnostic Detection with Decidable Structural Equivalence

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The paper presents a protocol‑agnostic method for detecting arbitrage in Ethereum by converting transaction traces into a canonical abstract syntax tree using a convergent rewriting system of 15 rules. This canonical form enables decidable structural equivalence of fund flows, allowing the authors to identify arbitrage cycles without relying on protocol‑specific patterns. Evaluated on 220,000 Ethereum blocks, the system confirmed 469,801 arbitrage opportunities, matching 83.5% of a production MEV platform and covering 81% of a GNN classifier, while producing no false positives in a manual sample.

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