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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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The holidays are a time when you wind down, and then prepare for the holidays. But the market in crypto was active throughout 2021.

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

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

Below is the hourly rate per LUNA for Anchor bLUNA – Anchor LUNA. 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?

Comparison of LUNA/bLUNA pricing across DEXs Source: Flipside Crypto
Arbitrage LUNA/bLUNA pair among different DEXs. Source: Flipside Crypto

Arbitrage between DEXs & 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.