Here’s how Terra traders use arbitrage to profit from LUNA and bLUNA By Cointelegraph



The end of the year is usually a time to relax and prepare for the holiday season, but the last few weeks of 2021 have seen the cryptocurrency market show no signs of resting.

One of the stories that grabbed the headlines is about reaching an all-time high by Total Locked Value (TVL), and the project has overtaken Binance Smart Chain (BSC) as the second largest blockchain for decentralized finance after that. After hitting the $20 billion TVL mark on December 24, Terra’s TVL channel volume has fallen to about $19.3 billion at the time of writing according to data from Davy LamaHowever, this is by no means a bearish signal.

Top 5 total value locked in top 5 block chains. Source: Devi Lama
Terra TVL in US dollars (left) to LUNA (right). Source: Devi Lama
LUNA price vs Luna/bLuna premium in percentage. source: Flipside encryption

Why are there spreads in Terra Markets?

Anchor bLUNA Hourly rate per LUNA less than 1. Source: Flipside encryption
Anchor bLUNA The hourly rate per LUNA is always lower than 1. Source: Flipside encryption

How to take advantage of arbitrage opportunities in Terra

LUNA/bLUNA price comparison via DEXs. source: Flipside encryption
LUNA/bLUNA pair arbitrage between different DEXs. source: Flipside encryption

Arbitration between DEXs and Anchor

Judging between DEXs and Anchor APY vs. LUNA Staking APY. source: Flipside encryption

Smart investors are always watching for the next opportunity