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




The end of the year is normally a time to wind down and prepare for the holiday season, but the last few weeks of 2021 saw a crypto market that showed no signs of resting.

One of the headline-grabbing stories related to reaching an all-time high in terms of the total value locked (TVL), and the project surpassed Binance Smart Chain (BSC) as the second-largest decentralized finance blockchain after . After reaching the $20-billion TVL mark on Dec. 24, Terra’s TVL has come down to around $19.3 billion at the time of writing according to data from Defi Llama, but this is in no way, shape or form a bearish signal.

Top 5 total value locked on the top 5 blockchains. Source: Defi Llama
Terra TVL in USD (left) vs. in LUNA (right). Source: Defi Llama
LUNA price vs. Luna/bLuna premium in %. Source: Flipside Crypto

Why are there spreads across Terra’s markets?

Anchor bLUNA hourly price per LUNA is below 1. Source: Flipside Crypto
Anchor bLUNA hourly price per LUNA is always below 1. Source: Flipside Crypto

How to capitalize on Terra’s arbitrage opportunities

LUNA/bLUNA price comparison across DEXs. Source: Flipside Crypto
Arbitrage LUNA/bLUNA pair among different DEXs. Source: Flipside Crypto

Arbitrage between DEXs and Anchor

Arbitrage between DEXs and Anchor APY vs. LUNA staking APY. Source: Flipside Crypto

Savvy investors are always watching for the next opportunity