You might be wondering:
“How the hell did that LP <buy> LUNA at $60 when the price dropped from $72 to $69 over 1 day?”
Stop wondering and read on!
/1
“How the hell did that LP <buy> LUNA at $60 when the price dropped from $72 to $69 over 1 day?”
Stop wondering and read on!
/1
https://twitter.com/shigeo808/status/1480619477892882433
For the sake of simplicity, I will analyse just 1 LP position (feel free to do the math for the other one as a homework).
9 Jan 2022:
164,459.5563 $UST
2,259.406722 $LUNA
LUNA @ $72.78
10 Jan 2022:
161,449.31 $UST
2,309.66009 $LUNA
LUNA @ $69.90
/2
9 Jan 2022:
164,459.5563 $UST
2,259.406722 $LUNA
LUNA @ $72.78
10 Jan 2022:
161,449.31 $UST
2,309.66009 $LUNA
LUNA @ $69.90
/2
Differences:
50.253372 $LUNA more
3,010.2465 $UST less
= $LUNA “purchased” at an average price of $59.90
Your math checks out, @Shigeo808. ;-)
But how is that possible when the price never went below $65 in the last 24 hours?
/3
50.253372 $LUNA more
3,010.2465 $UST less
= $LUNA “purchased” at an average price of $59.90
Your math checks out, @Shigeo808. ;-)
But how is that possible when the price never went below $65 in the last 24 hours?
/3
(Very rough calculation follows - I know and I apologise)
Average of $72.78 and $69.90 = $71.35
50.25 $LUNA @ $71.35 = $3585
That’s around $575 more than 3010 $UST “spent”.
Seems significant, but…
/4
Average of $72.78 and $69.90 = $71.35
50.25 $LUNA @ $71.35 = $3585
That’s around $575 more than 3010 $UST “spent”.
Seems significant, but…
/4
That’s a gain of $575 over 1 day at an LP position worth $328,919.
That’s 0.1748% gained in a day.
0.1748% x 365 = 63.81% APR
That is close enough to LUNA-UST LP APR for me to believe, that the discount came from accumulation of trading fees.
/5-end
That’s 0.1748% gained in a day.
0.1748% x 365 = 63.81% APR
That is close enough to LUNA-UST LP APR for me to believe, that the discount came from accumulation of trading fees.
/5-end
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