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Here’s how Terra traders use arbitrage to profit from LUNA and bLUNA -Breaking

by Mike Robinson

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It is a good time to take a break and relax before the holidays. But the end of the year was a great opportunity for you to prepare. The last weeks of 2021 were filled with crypto markets that didn’t seem like they would slow down.

A headline-grabbing story related to the achievement of an all-time high total value locked (TVL) and how the project overtook Binance Smart Chains (BSC), becoming the second-largest blockchain for decentralized finance. After reaching the $20-billion TVL mark on Dec. 24, Terra’s TVL has come down to around $19.3 billion at the time of writing according to data from Defi LlamaHowever, this does not constitute a bullish signal.

Top five total values locked onto the top five blockchains Source: Defi Llama
Terra TVL (right) vs. Terra TVL (left). Source: Defi Llama
LUNA price vs. Luna/bLuna premium in %. Source: Flipside Crypto

Why is there such a spread in Terra’s market?

The hourly Anchor bLUNA price per LUNA below 1 Source: Flipside Crypto
Anchor bLUNA hourly rate per LUNA is always lower than 1. Source: Flipside Crypto

Terra’s Arbitrage Opportunities: How can you capitalize?

Comparing LUNA/bLUNA prices across DEXs Source: Flipside Crypto
Arbitrage LUNA/bLUNA pair among different DEXs. Source: Flipside Crypto

Arbitrage among DEXs or Anchor

Arbitrage between Anchor APY and DEXs vs. LUNA staking APY. Source: Flipside Crypto

Investors who are savvy and ready to take advantage of every opportunity available will always be on the lookout for it.