People are fading @GMX_IO GM pools
Deltra Neutral funding rate farm opportunity of 16% APY n u can leverage it 10x for 160% up to 1m in size.
People are fading @GMX_IO GM pools
There was an Deltra Neutral funding rate farm opportunity of 16% APY n u can leverage it 10x for 160% up to 1m in size.
This strategy was mentioned by @DeFiMann and i'm just further explaining it + reminding guys to not fade gm pool farming
This is the orginal post
You short BTC in GMX v2 for 18.1%
Long BTC in binance for 14.2%
Earn 16% apy (18.1+14.2)/2 avg of the two apy at no leverage
You will have no exposure toward BTC price as u are shorting 1 BTC n longing 1 BTC at the same time
Too good to be true?
No, it is not.
surprising for crypto, this is not magic yield from ponzi.
This is a significant arbitrage opportunity because of
miss matching of
Long/Short ratio imbalance in BTC making funding rate appealing
GM BTC/USD ratio not balance
How does GM pool work?
It simple term it's balance is targetted at 1:1 ( but not fixed )
Whenever
BTC prices goes up/down in usd value
When Swaps are gears towards a single direction in volume
e.g. everyone is swaping from BTC to USD
When trader pnl is single sided
( if traders win in "Long" it will take away BTC in GM pool)
(if traders win in "Short" it will take away USDC in GM pool)
How can you capture this opportunty?
likely u wont setup a bot
Whenever there is a aggresive single side direction in BTC, ETH, you can have a look at arbitraging, or entering GM farming(at a discount ish)
Thank you for reading to here, not much actionable but hope this helpped u understand more about gm.
Sorry for the recent lack of meaningful post lately
i don't want to spam randomly when there aren't much happening in the market.
if u just want to chitchat u can find me here