Avalanche Tour

This is interesting.

On the Avalanche blockchain, on @BenqiFinance, there are several BORROW positions that are paying NET-POSITIVE $QI yields.

They are: $LINK.e, $USDC, $USDt, $WBTC.e, $WETH.e

Infinite $AVAX well

I am burning 1 $sAVAX to feed my infinite $AVAX well, BUT! lookie, here! I have 1 $AVAX to claim from said infinite well! Let's claim it and do the math. #EXCITE 🔥

This is the $AVAX-claim page where we claim the $AVAX from our infinite $AVAX well.

Okay. Claimed. Now, let's go to trade it to $sAVAX, looking for arbitrage.

BUT WAIT! and BEHOLD!

Our infinite $AVAX well tells me we have another claim coming in 1 hour. Let's hold off claiming this first one and claim both, saving a wee bit on transaction fees.

See y'all Avalancheans in an hour or so. 

... (an hour or so later, after my calming walk).

Okay, NOW we collect the 2ish $AVAX from the infinite $AVAX well.

So, $sAVAX earns 7%, just sitting there, so our arb, or other vehicle must make more than that to be worth it.

SO! Let's explore these options, shall we? 

Options

Restake

Well, what is this low-bar? Restake. What does that look like?

1. STAKE 2 $AVAX -> 1.97 $sAVAX on @BenqiFinance to earn 7.2%

The problem is we started from 2 $sAVAX, so we're going in the wrong direction with simply a restake.

Supply for $QI Yields

Now, let's explore alternatives. You can supply $AVAX at ~2% or $sAVAX at 8% $QI yield.

Neither are super-juicy for me, but we can do that.

Arbitrage

Next, let's look at arbitrage. It does, indeed, exist. Here are the $AVAX -> $sAVAX trades on @traderjoe_xyz,  @Platypusdefi, and @pangolindex.

The best arb is on @traderjoe_xyz rn, but what is that arb? How will I find it?

SPREADSHEETS! ... (of course).

*I go oft to create it

Okay, our SPREADSHEET says that tiny, little arb ...

has a 77.70% annualized gainzorxen?!?!???!!

WOOT!

Arbitrage computation.

Are we done? ... well, kinda. Let's look at other $AVAX options before we commit to this one. There may be something better.

One more thing to check before we take arbitrage, and that is AVAX-pools.

• On @traderjoe_xyz is the sAVAX-AVAX pool, 4%

• On @pangolindex is the AVAX-QI pool (NOT farm), because:

• On @BenqiFinance, you stake the AVAX-QI pool, 61%

Arbitrage looks best. Let's do that.

The arbitrage, when the dust settled, was:

• SWAP 2 $AVAX -> 2.002 $sAVAX on @pangolindex

for a 75.92% annualized gain.

Now we have 2+ newly minted $sAVAX. I'm going to stake these into the @BenqiFinance supply at 8% until I put them into the infinite $AVAX well.

The. End.