HIVE/ETH trading pair is now very important.
If this ratio changes, the ratio for arbitrage opportunities on wLEO changes. For example, LEO is now trading a penny higher than it was yesterday. The reasons?
- The trading value of ETH increased 2.5%.
- The wLEO/ETH ratio increased from 0.042 to 0.044.
- At a USD value of 356$ that's 14.952 cents to 15.664 cents.
- Sig figs (significant digits) are very important in arbitrage.
- At a USD value of 356$ that's 14.952 cents to 15.664 cents.
- However, Hive has also increased in 24/h 3.7%.
Meet the reality.
Yesterday I announced to everyone that I was undercutting the 0.8 sell wall to 0.83. That order sold, and I was 'instantly' able to turn that LEO into 100 more Swap.Hive after doing the arbitrage dance.
Arbitrage dance.
- Spend 1016 Hive for 1225 LEO.
- Turn 1225 LEO into 1193.5 wLEO.
- 1193.5 wLEO into 0.49 ETH.
- Sell 0.49 ETH into 1130 Hive.
- Wrap 1130 Hive into 1127 HIVE.SWAP using https://leodex.io (0.25% fee)
Looks like more people have been doing #5
Ah see, look at that. This @mydays guy is doing what I'm doing only he had more money to do it. That'll teach me to power up my 5k HIVE.SWAP.
In any case, the @leodex account has gone from a couple thousand Hive coins in reserve to 27k. That account is much more balanced out now, with 35k Hive.Swap coins remaining.
So this is kinda cool...
These are a list of transactions on Uniswap. Notice anything? Someone dumped 12.5k LEO for 5.4 ETH and the price didn't flinch. The price came right back up 9 hours later with 3 positive trades from the ETH side.
Notice anything?
There's a transaction that exists that never appears in the last 24 hours of activity.
Can you see what it is?
Notice how no one is actually removing liquidity from the pool. This trend will continue for quite a while while the bounty is going. The most recent transaction adds $22k to the liquidity pool... wow.
I can't even write this post fast enough... already $5000 more wLEO has been purchased in a 14 ETH clump and another $20k has been added to the pool.
Yeah shit's getting real and moving fast so I just need to post this now and start writing an update that I'll post in a few hours or at the end of the day. $230k liquidity is out of control.
With this much liquidity we can now buy and sell 10k LEO at a time with only 1.44% slippage. That's pretty unheard of up until now. Liquidity is only going to rise, and with it the value of LEO token. We all think a ratio of 1:1 is expensive because it just went x7, but the 1:1 ratio is now a baseline with a lot of liquidity behind it.
Once again, there is simply too much incentive to stake liquidity at the moment for the price of LEO to go down from here even after going x7. Even if Hive happened to spike and those buy walls HAPPENED to get bought out for arbitrage... that doesn't matter.
As we can see even if those 50k coins somehow got dumped on the wLEO market the price would not move much. Much more likely the people posting those walls (myself included) would take down the offer instead of allow ourselves to be arbitraged like that. This puts the price of LEO fully in Uniswap's hands, as I've already explained a few times now in other ways.
At this rate the Leo chain won’t be able to mint tokens fast enough to have the demand there’s still users who will stake!
There’s a lot of Leo sitting in random wallets that don’t use it there’s Leo being burned and post sellers don’t actually care about setting price they sell at whatever the buy wall is setting
The miner owners will have to keep that supply coming many opportunists like myself will be trying their like scalping this as we get our daily coins
Going to be fun
This amazing. The prospect of DeFi raising the price of the Token came true and the prospect of large Liquidity creating arbitrage opportunities also. It’s amazing when theoretical things actually happen. You start to think you understand some of this huge new trading world.
Posted Using LeoFinance Beta
I find that's usually when it all falls apart :)
Fun times @edicted.
Also consider the idea if wHIVE gets any volume, there will be arbitrage opportunities there...going from wLEO to wHiVE and then circling around.
Posted Using LeoFinance Beta
lol my brain hurts.
wLEO does at least seems to have more substance than some of the yield farming scams that are so hot right now.
Yes, the more I think about it, the more I realize that wLEO is way way ahead of the game compared to the fast majority of ERC-20 tokens... it's really at the top of the list in terms of functionality.
Also, with the value of the wLEO/ETH pair currently spiking... the buy order arbitrages are only becoming more profitable. I'm buying at 0.9
lol
You should mint a token that allows folks to mine through you?
I buy 500 edicted tokens, you pay me my percentage of the trades daily?
Having that smart contract on hive-engine might be the way to go?
I'd much rather lock my leo into a contract than have to trust somebody the way spew is doing.
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