1/ Gm Time Travelers ๐งโ๐
What time is it?
Time to borrow some cheap $ARB -- only on Timeswap!!!
We'll also explore different $ARB yield opportunities (ft. @Buffer_Finance @muxprotocol)
Here's a ๐งต to learn how to best use your $ARB! ๐ (1/10)
2/ For background, $ARB launched on March 23 and we saw:
- Intense volatility
- Massive trading volume
- Wild funding rates
But, things have now calmed down as the price has stabilised. ๐๏ธ
This funding rate graph shows the gradual decline in the $ARB speculation frenzy.
3/ With massive inflows of $ARB into our lending pools, borrowing costs has gone way down. ๐
Currently, a mere ~3.46% APR! ๐ฒ
Plus, non-liquidatable loans mean you don't have to worry about pre-maturity price movements! โ๏ธ
A very fair offer for borrowers, what do you say?
4/ So why would you borrow $ARB in the first place?
Here are some simple strats for you to utilise your $ARB positions:
1) Shorting or hedging
2) Arb (no pun intended) b/w Timeswap and @SiloFinance
3) LPing on a DEX
4) @Buffer_Finance's aBLP pool
5) @muxprotocol's $MUXLP pools
5/ 1) Shorting or hedging
Borrow $ARB and sell it.
Take the cash and use it to open a long/short to hedge/double down on your position.
If it works out, you have made a tidy little profit with no risk of liquidation!
6/ 2) Arb (no pun intended) b/w Timeswap and @SiloFinance
1. Borrow $ARB from @SiloFinance at 1.4% APR
2. Lend $ARB into our pools at 3.46% APR
3. Interest rate arbitrage profit -> (3.46 - 1.4)% = 2.06%
Simple and reliable! ๐
7/ 3) Providing liquidity on a DEX.
Because of the volatility and trading volume, being an LP is highly profitable.
Just look at those numbers! ๐
Just be sure to take IL into account!
8/ 4) @Buffer_Finance's $aBLP pool.
Their $aBLP pool is currently paying out 20.07% APR.
It's all in $ARB, so if you're bullish $ARB it's a solid choice to be an accumulatooor! ๐
9/ 5) @muxprotocol's $MUXLP pools.
They are paying out a whopping 56.24% APR!
And, the rewards are all in $ETH so you can accumulate ultrasound money. ๐ฆ ๐
But, it depends on $MUXLP 's performance as $ARB is only a small percentage of it -- so take that into account!
10/ As always, be careful and DYOR before interacting with any protocols. ๐ฆบ
So, which strategy are you going to choose? Or did you come up with your own? Tell us in the comments. ๐๐ฉ
Like and RT the first tweet to share the #alfa.
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.