Stock Groups

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

[ad_1]


While the end of the year can be a time when we wind down and plan for the holidays, 2021 was a period of high volatility in crypto markets.

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 LlamaThis is not a signal of bearishness.

The top five blockchains have the highest total value. Source: Defi Llama
Terra TVL USD vs. Terra TVL LUNA (right). Source: Defi Llama
LUNA price vs. Luna/bLuna premium in %. Source: Flipside Crypto

Is it possible to find spreads on Terra’s market?

The hourly Anchor bLUNA price per LUNA below 1 Source: Flipside Crypto
The hourly Anchor bLUNA price per LUNA remains below 1 Source: Flipside Crypto

Terra’s potential arbitrage opportunity: What can you do?

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

Arbitrage between DEXs & Anchor

Arbitrage Between Anchor APY, DEXs, and Anchor APY 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.