Our portfolio has held up really well today, despite broader market volatility. We deployed any new capital into stables, with the exception of adding $LUNA at $75.
TL;DR : $1.392m / 406.9 ETH
1. Added 15E to the USDC/fUSDT LP on tarot.to. We did not leverage. The current 1x APR is 114% although it's dynamic.
2. Added 10E to our USDC deposit on hundred.finance yielding towards the upper range of 32.46% since we have acquired veHND and staked in the hUSD gauge. Total deposit there $123,107
3. Bought and staked 10E of $LUNA at $75. With $LUNA currently at $80, this is worth over $100,000
4. Bought 5E of $CRV and staked on scream.sh at 8.85%. Didn't want to lockup as veCRV as it's a tactical long when market was distressed earlier. We also are keen to farm $SCREAM by using the platform.
5. Added to our $BTRFLY position yesterday evening, making our total holding now worth $117,000
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Here's a statistical approach for thinking about pair trading ✍️
This framework might help you no matter what your strategy is.
Let's take a deeper look at $ARB / $LDO, and how you might profit from this...
There are 2 ways of pair trading:
1) Narrative based 2) Statistical Arbitrage
Most trades on Pear Protocol are narrative trades i.e. you build a story why Asset A will outperform Asset B (in any market condition) and enter a long/short pos.
Here we'll focus on 2) Stat-Arb
Q1 - "Is there a statistical relationship between these two assets?"
Usually we jump to correlation for this (see below image lol).
More important than correlation, is this relationship between $ARB and $LDO constant over time? AND does it mean revert when it deviates away?
1. If you, as a retail buyer want to buy $IBTC (the iShares spot bitcoin ETF), then you'd go to your broker/online platform and swap your $ for shares in the ETF. The broker would go and buy the shares on the exchange (Nasdaq) on your behalf. Easy.
2. This is what we call the 'secondary' market. The shares already exist, and you can buy them at the market price. But what if there are no ETF shares available in the secondary market?
People don't really understand what Blackrock is, or what they do.
So let's go inside...
But first a little about their founder and CEO Larry Fink, since it will be important later
Larry joined Wall St in 1976. He was smart and made money. He pioneered the idea of debt securitization (packaging up different loans as bonds). He then ran the trading desk for those Mortgage Backed Securities (MBS). Yes, those bonds that led to the 2008 GFC 🤯