I'm not sure this self-liquidation-arb is working, as a concept.
See, if liquidation bids are lower than the $USK-price-δ, then an arbitrage exists for the self-liquidation of the asset, right?
Bids are at 5%; $USK-price-δ is ~6.5% so I SHOULD make 1.5% in arbitrage.
I'm not so sure.
Let's walk through this.
- @osmosiszone is selling $ATOM at a lower price than the FIN boards, so I bridge $axlUSDC there and swap for $ATOM, bridging the $ATOM back.
- Then, I provide the $ATOM to @TeamKujira BLUE, and self-liquidate.
Okay, so after self-liquidation, I'm given:
- 341.106 $USK: ~ 368 $axlUSDC
and I have
- 14.7 $ATOM: ~ 136.6 $axlUSDC
left over.
You see the problem, right?
I started with 500 $axlUSDC worth of $ATOM, which I self-liquidated.
But, with current prices, the results total
*504 $axlUSDC
A gain. That's good! But less than 1%, and self-liquidations are more work – albeit SEXIER! 😎 – than simple arbitration.
Conclusion
So: I'm grateful. I did make money on this self-liquidation, but ...
Self-liquidations require speed, there are a lot of moving parts, and the gains aren't that enticing.
I won't do self-liquidations anymore UNLESS there's a huge $USK-price-δ.
I can't recommend this approach.
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