Currency trading with perpetuals on Levana

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DRAGOONEERS!

PERPET-...RATORS!

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The EUR/USDC and GBP/USDC perpetual markets and those LPs (currently not tracking earnings there) are now LIVE on @Levana_protocol! 

Okay, so I gather liquidity, all from @TeamKujira Ghost, swapping $USK to $axlUSDC, then bridging that liquidity to @osmosiszone (where @Levana_protocol lives) via Satellite.

Am I g2g?

NUPE! When @Levana_protocol SAYS $USDC, @Levana_protocol MEANS $USDC, and specifically, NOT $axlUSDC.

Simple enough fix (now): @osmosiszone allows a nearly 1-to-1 swap between $axlUSDC and $USDC.

So, now I can establish positions in the currency markets on @Levana_protocol, which I do, starting with $EUR. I open both 50xLONG and 50xSHORT positions there.

Why take such risk? The chart history puts 50x within the realm of reasonableness.

That's currency markets for you. 

Of course, having just said this --^ ...

50x means that *zzt!* my money can evaporate in a heartbeat. That's why I'm starting verra smol with 50 $USDC positions at 50x. I get liquidated, I only lose $50.

This is high-risk trading, folks. Proceed with your eyes open.

Now I go to the $GBP market.

I notice something about this chart (and about the $EUR-chart, too): we're at ATH.

So, I only put in a 50xSHORT for 50 $USDC.

That doesn't mean the price won't go up. But I'll short, first. When I close the short is when I'll look at a long.

Game Plan

Here's my initial game-plan. I have a long and short against $EUR and a short against $GBP. When one of these hit my take-profit-point, I'll look at opening an opposed position.

(close a short, open a long)

Betting on a turn of the tide.

Because the markets always obey me? 😅

Of course, without fail, when I put in a long, the markets go down, and vice versa.

When that happens, I hedge with an opposed perpetual. And thus have the pretense of δneutrality:

I get to close the perpetual in the green and hedge with the opposed perpetual.

I'm sure every n00b goes into perpetual trading with an ironclad plan of attack.

Then what happens in the markets happens.

"To a Mouse," by Rob't Burns. Poetry Foundation.

Let's see how this develops. Is this my cuppa thé?

I'll give this a go, starting with verra smol bids, and see.

Answer to $DAI.e -> $UST currency swap pop-quiz

Answer to $DAI.e -> $UST best currency route pop-quiz

$DAI.e - @CurveFinance  -> $USDT.e

$USDT.e - @pangolindex -> $UST

99.94 $USDT.e becomes 3238.995436 $UST

Pop quiz: currency swaps

Pop quiz

On Avalanche

$DAI.e -> $UST (yes, you read that correctly).

What's the best route? Or: which route(s)(zorxen) gets you the most $UST for 100 $DAI.e?

• (answer)

Bonus question

Set up a system that routes stable x to stable y on Avalanche and finds the best routing, regardless of what x and y are. ('weighted path')

Consider @traderjoe_xyz @pangolindex @CurveFinance as routes.

Consider $USDC, $USDC.e, $USDt, $UDST.e, $DAI.e for x and y

• (partial solution; stable mappings)

Inspiration

This quiz and bonus inspiration was from my reading of O'Reilly's "Graph Algorithms" which referred to using Minimum Spanning Trees (MST) in currency markets.