Recently, I’ve been seeing a bunch of posts talking about “sandwich + arbitrage = opportunity.” It sounds pretty tempting, but my first reaction is still this: are you seeing an opportunity, or are you just paying other people fees? If you don’t include on-chain losses like slippage, gas, and MEV in the table, it looks like you can profit. But the moment you account for the trade price deviation and the probability of getting sandwiched, many “sure wins” turn into a bet that you’re not the last person in line.

RWA is the same. People use the yield of US Treasury bonds to benchmark on-chain yield products—put simply, don’t just look at the nominal yield. The collateralization ratio, the liquidation threshold, the lending spread, and so on are the real costs you’re paying. I’m more focused on calculating “what’s the worst that could happen,” rather than thinking “how much can I make at best.” In any case, my current approach is: I’d rather do fewer trades than be someone else’s daily source of fees.