Self-liquidation: works or nah?

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.

1. @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. 

2. 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.

ATOM self-liquidation arb

Interesting activity on the axlUSDC/USK board on @TeamKujira FIN AND on the $ATOM boards.

Two buy-orders filled, the first one, for 322 $USK was my $ATOM SELF-LIQUIDATION. I could buy the $ATOM back, at a gain, but I'm going to continue this arb.

• 2023-06-07: 35.622 ATOM -> 322.549 USK, 'SELL' at 9.56 self-liquidated

• 2023-06-07 placed: 322.549 USK -> 340.9273 axlUSDC, BUY at 0.9461 filled

For the self-liquidated $ATOM's $USK (wrap your head around that!), I place a sell-order with the $axlUSDC claimed. When that order fills, I'll buy-back the $ATOM from the $USK.

• 2023-06-09 placed: 340.9273 axlUSDC -> _ USK, SELL at 0.9563 filled