Sunday, November 13, 2022

Closing out a looped position: AVAX AAVE

I go to collect the $AVAX-yields on @AaveAave, but I notice something. 


Borrow rate is now above 10%, killing any gain from a looping strategy.

I go the CIAN and am confirmed.


It's time to close out my @AaveAave positions.

Let's do that.

Meanwhile, let's purchase some $AVAX on @coinbase, then transfer it to my Avalanche wallet.



Why do I do this?

So that, with the $AVAX I just withdrew from my @AaveAave position, I can start to pay-down the looped loan with a wee bit o' room to maneuver as I withdraw $sAVAX collateral, swap it to $AVAX to unloop the $AVAX loan.



With this bit o' breathing room, I can pull some $sAVAX collateral from the @AaveAave marketplace, swap it to $AVAX on @KyberNetwork, then pay-down the borrow with it. 



Now we unloop until there's no more borrow. 10x or more, I'm thinking. 

... okay, and the last 105 $sAVAX pulled from supply to cover (completely) the @AaveAave.


As predicted, it took 10 iterations to unwind this looped loan. Easy-peasies! 


Analysis


Let's grade this @AaveAave $AVAX Loop.

According to my SPREADSHEETSZORXEN!! I ran this loop for 30 days with a seed of 1031 $AVAX.




I got 1051 $AVAX out, net 19.7 $AVAX gained.


That's an APR of 23%.

Do I count this as a success?

Yes. Yes, I do. 😎💎🙌

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