Reactive Profitable Zone Expansion (RPZE): A New Paradigm in DeFi Arbitrage

In a financial landscape dominated by speed and brute force, Reactive Profitable Zone Expansion introduces a radically different approach to decentralized arbitrage. This book outlines a novel strategy built on selective path expansion, dynamic graph analysis, and real-time decision logic designed to locate and validate profitable trade cycles with surgical precision.

Rather than scanning every possible route in a token graph, RPZE begins with a single high-yielding edge and expands outward - but only in directions where profitability continues to rise or remain stable. Dead zones are ignored. Failing paths are pruned. Profitable zones are expanded intelligently, leveraging both deterministic logic and optional machine learning filters.

Inside, readers will find:

• A comprehensive breakdown of the RPZE strategy
• Comparisons with Bellman-Ford, Dijkstra, and log-weight scanning methods
• Real-time cycle streaming logic and execution path construction
• Profit filtering mechanisms based on liquidity depth, gas efficiency, and USD value thresholds
• Integration strategies with Flashbots, ephemeral wallet rotation, and subgraph-fed liquidity graphs

This is not just a technical guide - it's a systems-level manual for designing arbitrage logic that adapts, evolves, and survives under pressure. Whether you are an algorithmic trader, DeFi engineer, or systems architect, RPZE offers a framework that challenges conventional wisdom and redefines what it means to scan for profit.