I spent an afternoon poking through the Router / Executor flow of an older contest and the attached adapter model, and what jumped out felt like the kind of bug you’d see almost everywhere , a small design choice (delegatecall into user-registered adapters) that quietly hands the protocol’s own storage to any adapter that ever becomes whitelisted.Though seemingly only a centralisation risk . I also want to state how this may affect the ecosystem.

The core idea behind arbitrage detection in AMM-based DeFi markets is to represent swap routes as edges in a directed graph and then search for negative cost cycles. A negative cycle here corresponds to an arbitrage loop—starting with one token and returning to it with more value than we started.

The unique improvement adopted here, based on the research in the BTP project, is to convert token swap prices into log-space, allowing multiplicative price paths to be treated additively. This makes detecting arbitrage equivalent to finding cycles whose total log-weight is < 0.