Quick update that my "aUST+Short-mSPY" strategy @mirror_protocol worked like gangbusters. Closed all positions Monday for a tidy "uncorrelated" profit so I could manage LTV% during the crypto dump.
Scroll thru my "short" 🧵👇 for what I learned & ways to improve the strategy. 1/
Scroll thru my "short" 🧵👇 for what I learned & ways to improve the strategy. 1/
https://twitter.com/Shigeo808/status/1486419942157086724
2/
The good, the bad, & the ugly:
The GOOD:
I ended with more UST than I started with due to $aUST compounding & $mSPY falling. (Better than LPs losing value)
The BAD: $mSPY drop was so quick from when I started earlier in January that the $aUST didn't have much time to earn.
The good, the bad, & the ugly:
The GOOD:
I ended with more UST than I started with due to $aUST compounding & $mSPY falling. (Better than LPs losing value)
The BAD: $mSPY drop was so quick from when I started earlier in January that the $aUST didn't have much time to earn.
3/
The UGLY (part 1):
$mSPY premium increased about 0.75% due to volatility. That plus the 1.5% mint fee to cover did drag on it.
The UGLY (part 2):
The market and therefore pricing oracles were closed over the weekend. So I was sweating bullets until Mon AM. (suggested fix 👇)
The UGLY (part 1):
$mSPY premium increased about 0.75% due to volatility. That plus the 1.5% mint fee to cover did drag on it.
The UGLY (part 2):
The market and therefore pricing oracles were closed over the weekend. So I was sweating bullets until Mon AM. (suggested fix 👇)
4/
Been noodling new mAssets for @mirror_protocol and I believe m/ES (E-mini S&P 500 long & short futures) would be ideal.
Although futures markets close Fri-pm, they open Sun-pm instead of Mon-am. Also, they are only closed 1 hour Monday-Thursday.
Smaller lockout windows = 😊
Been noodling new mAssets for @mirror_protocol and I believe m/ES (E-mini S&P 500 long & short futures) would be ideal.
Although futures markets close Fri-pm, they open Sun-pm instead of Mon-am. Also, they are only closed 1 hour Monday-Thursday.
Smaller lockout windows = 😊
5/
Unfortunately $LUNA is still a liquidity trade, and we will be correlated with the broader market for some time.
This strategy can be an awesome hedge since it's one of the only true uncorrelated assets on #Terra.
What if we had multiple uncorrelated hedging options 🤔?
Unfortunately $LUNA is still a liquidity trade, and we will be correlated with the broader market for some time.
This strategy can be an awesome hedge since it's one of the only true uncorrelated assets on #Terra.
What if we had multiple uncorrelated hedging options 🤔?
7/
I was considering a number of inverse ETFs to expand the scope on Mirror.
But futures contracts are even better due the oracles being able to accommodate more market hours.
Plus with futures we have a plethora of diverse asset classes:
Gold, Oil, Natural Gas, Nasdaq, etc
I was considering a number of inverse ETFs to expand the scope on Mirror.
But futures contracts are even better due the oracles being able to accommodate more market hours.
Plus with futures we have a plethora of diverse asset classes:
Gold, Oil, Natural Gas, Nasdaq, etc
8/
There will come a time where I won't be so bearish on stonks. 🐻
If Mirror had both the long & short futures contracts then I could short-the-short to be long & still earn yield on my collateralized $aUST or $LUNAx while I wait to cover.
Delta-Neutral may even rise again!
There will come a time where I won't be so bearish on stonks. 🐻
If Mirror had both the long & short futures contracts then I could short-the-short to be long & still earn yield on my collateralized $aUST or $LUNAx while I wait to cover.
Delta-Neutral may even rise again!
9/
Questions/comments?
Or retweet 1st tweet up top to stimulate dialogue w/ the community
@SumoLuna
@Cephii1
@schoff60
@danku_r
@TerraBitesPod
@CryptoKnight944
@Shigeo808
@DefiantNews
@DrCle4n
@YieldFoundryDAO
@staderlabs
@NexusProtocol
Retweet 1st tweet up top.
Questions/comments?
Or retweet 1st tweet up top to stimulate dialogue w/ the community
@SumoLuna
@Cephii1
@schoff60
@danku_r
@TerraBitesPod
@CryptoKnight944
@Shigeo808
@DefiantNews
@DrCle4n
@YieldFoundryDAO
@staderlabs
@NexusProtocol
Retweet 1st tweet up top.
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