Thread by @logicalgraphs

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ARBITRAGE opportunity on Terra
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This is a new arb: $xPRISM -> $PRISM, so we'll walk through the process step-by-step this first time.

n.b.: $xPRISM == $PRISM + stake-gains, so $xPRISM is worth MORE than $PRISM, ALWAYS. Keep that in mind.

Do you see the arb?

1/ 🧵

$xPRISM is currently trading at a LOWER price than $PRISM. When I did the arb, 50 $UST swapped for:

* 94 $PRISM or 97 $xPRISM

Then it corrected itself as I was doing it. You have trade quickly with these arbs, it seems.

1. SWAP 50 $UST to 97 $xPRISM on @prism_protocol

2/ 🧵

Now, go to @prism_protocol Governance page, select the 'Unstake'-tab, and

2. 21-day BURN 97 $xPRISM to 100 $PRISM

98.31% annualized gain.

Arbitrage computed using docs.google.com/spreadsheets/d…

3/ 🧵

And, returning to the @prism_protocol Governance page, you see your $xPRISM slow-burning to those sweet, sweet gains.

The question is, however, do you want to do the burn at all? $PRISM is valuable for pairing, but $xPRISM has a secret weapon that makes it valuable...

4/ 🧵

Go to the "AMPS Vault"-tab on the @prism_protocol Governance page, you see that you can stake your $xPRISM (yes: you *STAKE* you *liquid staking token* ... um: wut???) to earn AMPS over time.

Go to the Stake-page. AMPS can be used to AMPlify $yLUNA yields to up to 200%

5/ 🧵

THIS was the special sweet and spicy sauce I was looking for! THIS is what makes the whole refracting and staking $yLUNA worthwhile. THIS is why I want to keep my $xPRISM, and not burn it: to generate AMPS.

So, we have a conundrum:

* arb good;
* staking good.

Wat do?

6/ 🧵

Any of you who follow my work know what I do when given a choice between two equally good options:

I choose both.

I'm already burning the swapped $xPRISM, so now I buy an equivalent amount of $xPRISM to stake for the AMPS-farming.

I set up the win on both sides.

7/ 🧵 finish