Let's do the MENSA-thang!
"What's the MENSA-thang!?" you ask.
Great question.
It's my way of trading LP tokens as tokens
First of all, I closed my ROAR-LUNA LP on @terra_money @astroport_fi.
2024-02-04
invested: $61.95
value: $172.05
ROI: 177.70% / 73.03% APR
SWEET!
2024-02-29 KUJI/LUNA-THANG! row 18
- no swaps: gathering 20 rows of data FRIST! #FRIST
KUJI: 0.00000
LUNA: 0.0000
LP: 108.310
TVL: $443.88 TVL EMA-20: n/a
PRISM "explained."
ROI: 210.87% APR: 503.05% ... WOW!
2024-02-29 MNTA/KUJI-THANG! row 18
- no swaps: gathering 20 rows of data FRIST! #FRIST
MNTA: 0.00000
KUJI: 0.0000
LP: 134.487
TVL: $572.99 TVL EMA-20: n/a
ROI: 331.88% APR: 791.74%
KUJI/ATOM-THANG!
Now, onto the KUJI/ATOM-THANG!
The KUJI/ATOM-thang! has some complications, because: not only is it the LP, but I also have yields-from-stake to claim as well as a KUJI/ATOM trade fulfilled.
I collect both.
Now: let's look at the value-proposition of the LP.
I started with a ~$136 investment and it's now worth over $500.
That's good, right? Great, in fact, right?
My answer there is: dunno, ... maybe?
Let's analyze at the measures.
When I started this LP, I had 106.407 $KUJI and 10.127 $ATOM worth, at the time, $139.894.
Now the LP is 57.753 $KUJI and 22.147 $ATOM, worth, today, $501.083.
Those are some NIZE GAINS! 😎
... but ...
What if I had the original amounts? What would they be worth today?
- 106.407 $KUJI * $4.35 + 10.127 $ATOM * $11.282 = $577.125
Meaning: If I had just HEDL the original amounts, and not provided them to the LP, I would have ~ $70 more than I do now with the LP.
Bollucks! 😤
This, however, is the price of LP-ing your funds. YOU provide the liquidity, OTHER PEOPLE trade back and forth, and you make the trading fees.
Except, of course, you don't. You make 1/nth of the trading fees, and, as you see: the value-proposition just isn't there, for anyone.
Some people may disagree with my conclusion, including younger me, when I was making $1,000s of incentivized yields AND gains on those good ol' @DeFiKingdoms $JEWEL LPs, earning 1,500% APY.
That was a special time for LPs back then, when $JEWEL went from $1-per to $20-per.
But the @TeamKujira BOW LPs are nothing like the @DeFiKingdoms LPs, and, although the yields for the LP KUJI-ATOM may be "20% APR," I still am down 50 $KUJI for 10 $ATOM, and that just doesn't make good math.
The trader in me feels a wee bit ill.
There was this j-random on the twitters who parachuted into one of my @TeamKujira 🧵s and said: "Invest in the BOW LPs: it's a no-brainer."
I wish that person were here now.
The 'no-brainer,' I'm thinking, was that guy.
Does that mean LP = bad? Am I saying "LP = bad"?
Yes?
It really depends on your investment approach. Really.
@KPeruggi used some LP-investing to multiply $KUJI and other paired assets during a market-upheaval, but that's SMART and VIGILANT investing with LPs, my frenz, m'kay?
I'm not smart nor vigilant (and many of you may grumble: "Dude, you're the smartest, most vigilant investor I know! How can I win if it's too hard for you?") (fair question) (which I'll get to right now), so, then, what works for me?
The EMA20 indicator and order book trading.
I mean.
LOOK at this THANG! this KUJI/ATOM order book on @TeamKujira FIN. It's a thing of beauty once you manage it properly.
Say I start with
- 10 $ATOM. I buy $KUJI with it, 29.1 $KUJI, in fact.
- I take that 29.1 $KUJI and sell it 12 $ATOM.
I just arbed a 20% gain, folks
Or, I could start the other way 'round with
- 30 $KUJI which I would sell for ~13 $ATOM
- which, when that order fills, I then buy 37.78 $KUJI with the claimed $ATOM.
That closes in on nearly a 30% gain there, folks.
"Yes, geophf, but how long would that take?"
Hm. I've HEDL this LP for 153 days. I could have both those orders fulfilled multiple times in that period. How do I know this? Because you've seen me execute trades like that on FIN over, and over, and over, again.
Now, the LP does the same thing (kinda), except that its goals are different, as its goals are xyk, meaning that it strives for parity and balance for each trade (that is: xyk).
I, as trader, strive for gain for each trade.
The LP and I: we are not the same, my frenz.
I place both a buy- and sell-order on @TeamKujira FIN KUJI/ATOM, then I rend the LP on BOW and move that liquidity to Ghost (lend). The additional $KUJI and $ATOM I am treating as reserve for trades using the KUJI/ATOM-ratio, guided by its EMA20 indicator.
