Kujira Ghost arbitration: borrowing, lending, bidding with x-tokens

Let's look at a 3rd way to arb with Ghost on @TeamKujira.

First, we borrow an asset (which asset?)

Then, we lend that borrowed asset to get x-asset.

Finally, we bid on a liquidation with that x-asset.

That's the plan.

How do we do this?

First, let's examine the marketplace.

You see from the ORCA marketplace (OT) that there are 4 markets with volume, but three of them are overbid, particularly $xKUJI, so, let's stay away from that one. One market, $stATOM, has a lot of liquidity but hardly any bids, so: I loan myself $stATOM, lend that to get $xStATOM, and then bid on ORCA with those x-tokens.

When that liquidation is fulfilled, I'll buy-back $stATOM at market price with the discounted $USK, pay back the $stATOM to close the borrow, and keep the overage.

YAY!

This approach was inspired by a tweet from @DeFi_N00b who ran this arb quite successfully.

Which Borrow? pop-quiz

Okay, I've 

• BRIDGED $1000 worth of $AVAX to Avalanche from Coinbase, and, following my plan, 

• SWAPPED that to $sAVAX on @traderjoe_xyz (which has the best swap rate today)

• to SUPPLY @BenqiFinance.

Money Market and x-token pop-quiz:

1. Which do I BORROW: $AVAX or $sAVAX? 
2. Which BORROW gives me more value?

The Borrow rate and payout information per token:

• $AVAX rate 7.49%, payouts: $AVAX 0.67%, $QI 0.42%
• $sAVAX rate 2.95%, payouts: $AVAX 0.00%, $QI: 0.00%

Amplifying information:

$sAVAX has a projected (intrinsic) growth rate of 7.2% APY. That is to say, after one year, 1 $sAVAX will still be 1 $sAVAX, but the underlying worth will be 7.2% more $AVAX in one year.

That information may ... 'help.' 😈

FUN!

A Dialogue on 'starting smol.'

A Dialogue on 'starting smol.'

"geophf, I'm not rich, like you..."

me: "I hate you already, but okay."

"but I have $16. Can I invest in @DefiKingdoms? Is it too late? What about 'IL'?"

... let's talk. 

Okay, we've had the IL-conversation.

We know that LPs can be good, but how about the $xJEWEL-option in the BANK? I covered this some in the IL-convo, but we need to have the talk now about 'x'-tokens in a portfolio.

Ugh: a lot of ground to cover.