Trading LPs as tokens using EMA20

Do you want to hear something ... weird?

An indicator exists that tells you should trade an LP and how much you should trade. Take LP KUJI-ATOM:

1. 1 LP token has a USD-value
2. both $KUJI and $ATOM have USD-values

So 1 LP token ... IS a token! just like $KUJI or $ATOM.

Here's the thing.

I'm tracking the prices of $KUJI, $ATOM, ... AND LP KUJI-ATOM, daily, on my PRISM SPREADSHEETSZORXEN! 

I'm doing this to trade between $KUJI and $ATOM using KUJI/ATOM-ratio vs EMA20 as a trade-indicator.

EMA.

But! I could, with those data I'm collecting, just as easily ratio, say:

• LP KUJI-ATOM/ATOM vs EMA20 or
• LP KUJI-ATOM/KUJI vs EMA20

These indicators would tell me whether to swap the LP for $KUJI (or $ATOM) or vice versa.

We have that, already, with the 0 volume FIN boards.

Here's the first 'weird'-THANG!:

Given I already have the $KUJI, $ATOM, and LP KUJI-ATOM, ... I don' need no steenkin' FIN boards.

• When I 'sell' the LP, I simply break the 'sold' part apart, giving me $KUJI and $ATOM.
• When I 'buy' the LP, I provide liquidity.

I'm the trader.

So, ... this applies anywhere and everywhere where an LP exists.

That means I could do this with the ETHBTC-THANG!:

• trading LP ETH-BTC against $ETH and $BTC

...as I grow my ETHBTC-bag.

Speaking of which: ANYONE KNOW WHERE I CAN FIND A GOOD LP ETH-BTC??? *cough* @TeamKujira 

Here's the second weird thing.

• 'ratio vs EMA20' is 'simply' a mathematical construct.

I can make any ratio I so please, e.g.: ETH/BTC, KUJI/ATOM, LP KUJI-ATOM/KUJI

but ... how about:

• LP KUJI-ATOM/MNTA?

Can I do that?

I just so happen to be measuring $MNTA, too, so: YES!

Wai-wai-wai-wai-wai-waitaminit, geophf! What does 'LP KUJI-ATOM/MNTA' even mean?!?

RIGHT??

It means, simply: I can trade LP KUJI-ATOM for $MNTA (or vice versa) BASED OFF THE PRICE OF $MNTA (and the price of LP KUJI-ATOM, of course).

I'm trading THREE TOKENS AGAINST EACH OTHER!

My hat's off to @TeamKujira for floating the FIN LP KUJI-ATOM/ATOM and LP KUJI-ATOM/KUJI boards.

Genius move.

Genius.

But that hasn't even scratched the surface (see PT).

How about:

• LP MNTA-KUJI/ATOM or
• LP KUJI-ATOM/LUNA or
• LP KUJI-LUNA/USK or
• LP ETH-BTC/USDC

HUH???

So, recap:

1. First weird thing: I'm the trader, so I can trade, regardless of the volume on the FIN boards, given I have the LPs and tokens to do so (and LPs ARE tokens, recall?)
2. Second weird thing: I can trade LPs against tokens REGARDLESS OF THE LP-COMPOSITION!

WHAA?? 😱

So, ladies and gentles, ...are you ready for the third weird thing?

The Beethoven protocol on @FantomFDN (where I lost all my liquidity on a bridge-hack) (no, I don't want to talk about it), has the Late Quartet LP composed of:

• $ETH - $BTC - $FTM - $USDC

See where I'm going?

Where I'm going is here:

1. recall that LP tokens ARE tokens.
2. I am measuring LP ROAR-LUNA price on @terra_money 

What's to stop me from trading:

• LP ROAR-LUNA/LP MNTA-KUJI or
• LP ROAR-LUNA/LP KUJI-ATOM or
• LP MNTA-KUJI/LP KUJI-ATOM?

Answer: absolutely nothing at all.

What does this mean? Given the prices and the EMA20s of the above tokens, or any tokens, for that matter, I can trade one token against the other, and if one or two of those tokens are two tokens (i.e.: LPs)

I can be trading four tokens, against each other, algorithmically.

Wow.

"But, el geophf! This too hard! I no have ur genius🧠!"

Nobody has my genius🧠, 'cept me, so I agree.

But that's where protocols like @BlendProtocol, when it goes live, or @CALC_Finance come in. You set up the strategy or blend, then fire, and forget.

If that's your cuppa thé.

The point of this🧵is that you can do one, or any, of these weird things: you're the trader.

The point of this🧵is to provide you with this way of seeing trading LPs: that they have utility outside of providing liquidity AND that you can measure their value against other tokens.

Here's another point to this🧵

How did I come up with these weird ideas?

1. By standing on the shoulders of giants: @TeamKujira FIN's LP KUJI-ATOM/ATOM and /KUJI boards opened up a world of possibilities to me. @Prism_Protocol refracted 'tokens' which I translated to LP-trading.
2. By measuring.

I can't stress this enough.

• Measure what you have.
• Measure your strategies.

Then, take a step back, and let the data speak to you.

You'll see things in the data when you measure them. When you have these insights, YOU have market-advantage.

I love you.