Wednesday, December 7, 2022

1 LP KUJI-ATOM token valuation

Okay, let's figure out the value of 1 LP KUJI-ATOM.

We see what it sells for on the LP KUJI-ATOM/KUJI board.


Recent trades are at 8.699.

Is that ... a reasonable price?

Let's see.

Where do we go to get an impartial valuation of an LP KUJI-ATOM token?

BOW.


Go to the LP and mint 1 token, that will take a certain amount of $KUJI and $ATOM. Multiply the $KUJI amount by 2 to find 1 LP KUJI-ATOM / $KUJI valuation.


1 LP KUJI-ATOM = 7.965 $KUJI or 0.51382 $ATOM

So, knowing the prices of the LP KUJI-ATOM tokens, I mint a bunch of them 


then put them up on the LP KUJI-ATOM/KUJI order book and the newly active LP KUJI-ATOM/ATOM order book.



What happens when my LP tokens sell? 

Well, that's easy: I now I have $KUJI or $ATOM, depending on which board my tokens sold.

What happens when I buy LP tokens?

3 possibilities:

  1. resell them on whichever board.
  2. stake them on BOW
  3. refract the LP tokens to KUJI and ATOM

I chose the word 'refract' deliberately.

By creating a space on the FIN marketplace for LP tokens, @TeamKujira has bettered what Prism did for Terra's (original) $LUNA.

  • The LP token equates to the composite.
  • That can be refracted to two very different token types.

And since all three token-types: $KUJI, $ATOM, and LP KUJI-ATOM, can be bought and sold on FIN marketplace, in multiple order books, the trading possibilities now, ...the interplay of these three tokens and their valuations, is dizzying.

As mentioned: this is an arbiteur's dream

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