Stat-Arb on Layer-2 Rollups: Latency Tests and Execution Slippage
Introduction
Statistical arbitrage (stat-arb) has long thrived in traditional markets by exploiting tiny, fleeting price discrepancies across correlated assets. The same quantitative playbook is now crossing the bridge into the blockchain economy, particularly onto Ethereum Layer-2 (L2) rollups where lower fees and faster blocks promise juicier spreads. Yet, the microstructure