TERRA: PRISM arbitration

🚨🚨🚨 ARBITRAGE opportunity on Terra 🚨🚨🚨

This is a new arb: $xPRISM -> $PRISM, so we'll walk through the process step-by-step this first time.

n.b.: $xPRISM == $PRISM + stake-gains, so $xPRISM is worth MORE than $PRISM, ALWAYS. Keep that in mind.

Do you see the arb?

$xPRISM is currently trading at a LOWER price than $PRISM. When I did the arb, 50 $UST swapped for:

• 94 $PRISM or 97 $xPRISM

Then it corrected itself as I was doing it. You have trade quickly with these arbs, it seems.

1. SWAP 50 $UST to 97 $xPRISM on @prism_protocol 

Now, go to @prism_protocol Governance page, select the 'Unstake'-tab, and

1. 21-day BURN 97 $xPRISM to 100 $PRISM

98.31% annualized gain.

Arbitrage computation

And, returning to the @prism_protocol Governance page, you see your $xPRISM slow-burning to those sweet, sweet gains.

The question is, however, do you want to do the burn at all? $PRISM is valuable for pairing, but $xPRISM has a secret weapon that makes it valuable...

THIS was the special sweet and spicy sauce I was looking for! THIS is what makes the whole refracting and staking $yLUNA worthwhile. THIS is why I want to keep my $xPRISM, and not burn it: to generate AMPS.

So, we have a conundrum: 

• arb good; 
• staking good.

Wat do?

Any of you who follow my work know what I do when given a choice between two equally good options:

I choose both.

I'm already burning the swapped $xPRISM, so now I buy an equivalent amount of $xPRISM to stake for the AMPS-farming.

I set up the win on both sides.