Using Ghost on Kujira: a case-study, LUNA

Using Ghost on @TeamKujira: a case-study.

Okay, I supply 100 $USK, and borrow 24 $LUNA against that.

It's weird that I've lent 500 $USK already, but none of that is available for borrowing against.

I have a lot to learn here. 

./vern, my main man, ./vern tells me there's a $LUNA-arb:

• LUNA,USK,KUJI,ATOM,axlUSDC,LUNA

So I kick off that arb by selling my borrowed $LUNA on the LUNA/USK FIN order book. 

• 2023-04-28 placed: 24 LUNA -> 29.472 USK, SELL at 1.228 filled

I have the wherewithal to run these trades in parallel inside the transaction.

So, I place the following additional limit orders:

• 2023-04-28 placed: 29.449896 USK -> 30.6068 axlUSDC, BUY at 0.9622 filled

• 2023-04-28 placed: 30.583879 axlUSDC -> _ LUNA, BUY at 1.171 [deferred]

You see that the trade-path is much simpler than what ./vern, my main man, ./vern recommended, but still I make out on the arb, starting with 24 $LUNA, and, when the last limit order fills, ending up with 26.1 $LUNA.

When that occurs, I'll pay off the $LUNA-loan and keep the arb

And, as I wrote writing PT, the middle order filled (USK->axlUSDC), which is cool, ...

... then, right after that, the first order filled (LUNA -> USK), which is SUPER cool!

THIS ARB-STUFF IS HELLA K-KOOL, FRENZ! 😎

Postlude

So, $LUNA shot up 17¢ while I was writing this, so the final bid is '[deferred]'.

In the interim, the axlUSDC/USK bid hit, so let's arb around to regain our 24 $LUNA somehow.

• 2023-04-29 placed: 30.584 axlUSDC -> 29.183 USK, SELL at 0.9542 filled

... and it looks like ./vern, my main man, ./vern found an arb to dig me out of this predicament.

• USK,ATOM,axlUSDC,USK,LUNA

I love ./vern, I do. ./vern, ./vern is my main man, ICYMI.

So, I put in all trades as limit orders, tout à coup!

When the buy $LUNA limit order hits, I'll close the borrowed position and lend the arb'd $LUNA, growing my $LUNA bag on Ghost, ... with BORROWED MONEY!

How cool is THAT? 😎

The orders, for completeness sake:

• 2023-04-29 placed: 29.183 USK -> 2.6408 ATOM, BUY at 11.051 filled
• 2023-04-29 placed: 2.623 ATOM -> 30.4247 axlUSDC, SELL at 11.599 filled
• 2023-04-29 placed: 30.7451 axlUSDC -> 29.4999 USK, SELL at 0.9595 filled
• 2023-04-29 placed: 29.4778 USK -> 24.1819 LUNA, BUY at 1.219 filled

Okay, the $LUNA arb cleared, finally, with 24.164.

It yain't much, but it's honest work.

• I claim the order on FIN

• I close the borrow on Ghost (paying 0.002 $LUNA fee)

• I lend the arb (0.162 $LUNA) on Ghost.

ROI: 0.67% (meh! 😤) annualized to 268.58% APR (better 😅)

A reminder of what some of you are probably laughing at my minuscule lend of 0.162 $LUNA:

1. This illustrates my principal of 'Start verra smol.' Yes: I follow my own rules, too.
2. This 0.162 $LUNA is now MINE from BORROWED money. I can build a bag from this start.

Thx, fam 😘