Logical Graphs LLC: 2023-08-19 ETHBTC-THANG! Day 83

Saturday, August 19, 2023

2023-08-19 ETHBTC-THANG! Day 83

Let us do the ETHBTC-THANG!

2023-08-19 ETHBTC-THANG! Day 83

The ETHBTC-THANG!

swap 0.2736 $ETH

After swap:

ETH: 4.91334

BTC: 0.03618

Total: $9,070.44

TVL EMA-20: $9,756.98

n.b.: TVL EMA-20 indicates that ETHBTC, itself, is undervalued.

Before I do the $ETH -> $BTC swap, let's check the @TeamKujira FIN boards, and lo! and behold! there's a hit: a $BTC catch-all buy-order on wBTC/USK.

catch-all HOWTO.

I collect the $ETH to swap from Ghost Lend

I transfer the $ETH from @TeamKujira to @osmosiszone via Satellite bridge

I swap the $ETH to $BTC

I transfer the $BTC back to @TeamKujira via IBC.

After the swap, I lend the combined $BTC (from both the catch-all order and from the swap) to @TeamKujira Ghost.

Now, I go through this exercise of swapping $BTC for $ETH, or, for today's case, swapping $ETH for $BTC.

Is it worth it?

That, frenz, is the zillion dollah questioné!

Here's a little chart that gives you the answer.

(Spoiler: it's 'yes')

Chart says: 'yes!'

How? How do we read this chart?

This chart is a vs.-chart comparing if I simply HODL my assets as I accumulate them vs. if I swap them based upon the EMA20 vs. ratio lines.

Chart says I've made $532.04 NET over 83 days with swapping.

ROI: 6.19%

APR: 27.24%

Okay, so I've swapped $ETH for $BTC. Mission accomplished (or, more accurately: 'accomplishing').

Do I buy $ETH or $BTC? Yes. How do I know that?

Let's look at the Total Value of the ETHBTC-portfolio, particularly the TVL vs. the EMA20 TVL.

Okay, here, today, you see the TVL ($9,121.71) is below (way below) the EMA20 TVL ($9,761.86)

What it that mean?

Recall EMA20.

So, the EMA20 on the TVL means when the TVL line dips below the EMA20 line, ETHBTC is UNDERVALUED.

For me, that's a BUY call.

Okay, so: buy what, however?

That's where the ETHBTC ratio vs. EMA20 (ETHBTC ratio) comes in.

When the ETHBTC ratio is HIGHER than the EMA20, as it is today, that means $ETH is EXPENSIVE, relative to $BTC.

So that means $BTC is 'cheap.'

BUY $BTC is the signal.

Okay, 'BUY $BTC.' Got it.

Where?

For me, I use my @TeamKujira positions to do the arb'n ETHBTC-THANG! then I use @Cardano @Indigo_protocol to accumulate $ETH and $BTC (or, more correctly, their synthetic equivalents).

Why?

@Indigo_protocol has staking, yielding $ADA and $INDY

That means I need to collect liquidity and transfer it over to @Cardano. Please excuse me while I do that.

Transferring liquidity from @TeamKujira to @Cardano, HOWTO (e.g.).

I transfer ~$100 of $ATOM to @coinbase from @TeamKujira by way of @cosmos and place a sell limit order on it. When that hits, I'll swap the resulting $USDC to $ADA to move the liquidity to @Cardano