In the currency circle last week, LUNA was the most popular.
In the past, LUNA’s market value was the highest in the top five, with a total market value of more than 600 billion, and a circulating market value of more than 270 billion, and now it is almost zero.
What can we learn from LUNA?
Less Operation, Less Loss
- When witnessing history, don’t involve yourself as cannon fodder.
- What you see in making money/getting rich is all survivor bias. Maybe 5 out of 100 people made money, but you didn’t see 95 people lose money.
- Many people you see are making money, and it is very likely that the major clients saves themselves. Because the major clients are stuck, they need to have leeks to take over.
Remember, your decisions must be made by yourself, not by others.
Arbitrage Opportunities in LUNA
- Exchange LUNA arbitrage.
Suppose 1UST=1U, but now 1UST=0.1U, you use 1U to buy 10 USTs and exchange them for LUNA worth 10U, which means that as long as LUNA does not fall by 10 times during your operation, there is room for arbitrage.
But this operation will also have risks. For example, in the process of your operation, the decline will exceed 10 times, or the chain will be stuck, etc.
- Contract hedging.
For example, open a 1x short order to hedge the risk of falling. Although the income is reduced, the contract makes money.
But in fact, it is difficult to close the position of the contract on the later exchange, because there is no counterparty.
In general, although there are arbitrage opportunities, do you really know how to operate them? Don’t just watch others make money, think about how to make money yourself.