Here's a 𧡠to learn how to best use your $ARB! π (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. ποΈ
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. π
Currently, a mere ~3.46% APR! π²
Plus, non-liquidatable loans mean you don't have to worry about pre-maturity price movements! βοΈ
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! π
7/ 3) Providing liquidity on a DEX.
Because of the volatility and trading volume, being an LP is highly profitable.