On July 30 I decided
$TCY was overpriced relative to
$RUNE
Both assets should be correlated, maybe not at 10% relative market caps as
@jpthor would say, but certainly lower than 17%
Against logic the trend kept going up!
why fight it
So, in order to take advantage of this distortion in the market, I set up a single-sided LP on
@RujiraNetwork to the upside
My thesis was TCY would eventually crash below 17% market cap of RUNE
Given that long term I wanted to keep my TCY, putting the asset to work made sense. I could round-trip and get my TCY back, plus fees in a custom concentrated liquidity pool
Mind you I say "put the asset to work" but the truth is neither TCY nor RUNE are idle capital; when staked or bonded, each one yields a share of
@Thorchain's real revenue earned from its users' swap fees
therefore, the returns on my LP had to be greater than what I would get staking or bonding
They certainly were. I've almost got back all my TCY, plus I made a whack of yield, and there's still some room to go out of range on the bottom side
Solidly in profit on both assets of the pair
Also, since the range is between two crypto assets, and both assets are up in dollar terms since August 1st, I'm doubly in profit compared to the dollar
All in all a textbook play, based on a thesis that market distortions and volatility can be profitable if you decide to be a market-maker
You can do it too, with your own idle assets
Try your own strategies, by putting your crypto to work on Rujira. You can set up large ranges to minimize the impact of impermanent loss. All options are there. Try it with BTC
ETH
BNB
BCH
AVAX
TRX
USDT
LTC...
ALT Custom Concentrated Liquidity on Rujira.network