Let's talk about the KUJI/ATOM @TeamKujira FIN board for a hot minute
I've talked about it before: http://logicalgraphs.blogspot.com/2023/05/kujira-fin-barometers.html
But I want to hammer home its importance to you, my dear fren, as a trader.
Why? I just made 7% ROI, annualized to 1.4k% APR, on a $KUJI-arb on that board
FIRST! Let's go over the particulars of this arb.
- I borrowed 500 $KUJI from Ghost Lend
- I sold it for $ATOM on KUJI/ATOM (limit order)
- I bought the $KUJI back from that $ATOM on KUJI/ATOM (limit order)
- I repaid the borrow.
- I profited.
It's.
That.
Simple.
Specifically,
2023-06-14 exit: 49.4 $KUJI -> 538 $KUJI, BUY at 0.0917
ROI: 7.74%, annualized to 1,413% APR
Now, there are some interesting things to call out in KUJI/ATOM-'arbs.'
- What is the price of $KUJI on entry? on exit?
- What is the price of $ATOM on entry? on exit?
Because, ICYMI: both tokens' prices have swung WILDLY these past few days.
How do price-swings affect the arb?
The answer for $KUJI-price/$ATOM-price questions is:
無
That is to say, the prices of these tokens are not important to this arb. What's important is the RATIO of their prices.
If you sell at a higher ratio, then buy-back at a lower ratio,
THE ARB WORKS
REGARDLESS OF PRICES!
THAT, my dear frenz, is the magic of arbs on the KUJI/ATOM FIN board: you're not looking at the prices of $KUJI or $ATOM, you're looking at the ratio between them. When the ratio trends up, BOOM!, you ride that trend, buy low, then sell high, and it also works, vice-versa.
You want more magic?
Here's more magic.
That means the likelihood of your trade getting executed in the maelstrom of activity is much higher on this board than on most other boards on @TeamKujira FIN.
"BUT HOW DO I GET STARTED, o, el munificent geophf?"
I say: start smol, and start focus. How? Like this.
Take, e.g. 50 $KUJI, sell it at one limit (order), then when that order clears, buy it back with the $ATOM at a lower limit (order).
Presto: you have more $KUJI! IT WORKED!
Alternatively, if you're jones'n for an $ATOM arb, then buy $ATOM with $KUJI with a buy limit order, and, when that fills, sell the $KUJI at a higher price (limit order) and WHAMMO! MORE $ATOM! IT WORKED!
See?
Easy peasy! Lemon squeezy!
Give it a go. The KUJI/ATOM board is 🪄
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