Tuesday, February 20, 2024

Decentralized unstaking on Unstake.fi leads to market efficiency

"The inefficiency of @unstake_fi" in 2 screen shots.

I bought 93 $ampKUJI with 96.2 $KUJI
I can unstake the $ampKUJI instantly for 96.8 $KUJI on @unstake_fi, which is great, but ...




But here's the thing, the LOWEST sell-limit order I put in gets me back 97.1 $KUJI.


To be fair: @unstake_fi is instant, whilst I have to wait for the lowest sell limit-order to fill.

Here's my counter: 
  • you can unstake, 
  • and still below market price, 
  • AND still beat my sell order, 
  • AND still make profit to run the protocol.

And @unstake_fi could do all of the above, and quite easily, with an infinite $KUJI well.

My statement is this: until @unstake_fi can better what I can with the LOWEST sell limit-order, I'm going to keep using, and keep profiting, from that market inefficiency.

For context, the LOWEST LIMIT ORDER IS BELOW THE EXCHANGE RATE! ... WAY below the exchange rate!




And that's why, my frens, I think @unstake_fi is doing WAY better than they're letting on, for themselves, OR, they COULD be doing WAY better for the unstaker.

Way better, frenz.

Please note: my sell-order is BELOW the exchange rate, so, that strongly incentivizes a buyer.




They would make money:

  1. buy my sell-order
  2. slow-burn
  3. claim MORE $KUJI than their buy-order.

This I call an infinite well: it pays for itself.

My hope here is that other people see and use this inefficiency but my real hope is that @unstake_fi employs the infinite well to 

  1. profit well, still, and
  2. offer an exchange rate nearer to market price that incentivizes using the unstaker.

Decentralized Unstaking

Or this, which I have been calling for from @unstake_fi incept date:

  • decentralized unstaking.

I provide $KUJI to a pool for $ampKUJI unstaking. When somebody wants to unstake their $ampKUJi, they use that $KUJI and I get paid in $ampKUJI.

Same of $qc-tokens and $st-tokens.

With

  • decentralized unstaking

  1. The suppliers get paid $NSTK-yields
  2. The suppliers get LSDs at a premium.
  3. The unstakers get the base tokens, instantly.
  4. @unstake_fi doesn't need to front ANY liquidity, as the suppliers do that for them.

  • Decentralized unstaking for @unstake_fi:

the path to efficient markets.

  • Thanks to @vengo_coj and @_ZRho_ on teh twitterz for their questions and prompts that helped to form this pensée.

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