Arbs

Overview

Page: https://lookintomaxi.com/token-arbs/

The Arbs page provides an analysis of short-term (backing value) and long-term (APY %) arbitrage opportunities between different stake pool tokens.

It helps users identify potential speculative plays on the differences in market prices, premiums, or discounts relative to the backing values of these tokens.

By comparing the spread of these values, users can determine whether a token is overpriced or underpriced in relation to another, enabling strategic swaps to capitalize on these discrepancies.

Backing Value Arbs

The backing value of each token is determined by the principle plus the yield generated so far in their respective stakes. The displayed discount or premium percentages provide a comparison of these backing values across tokens.

• Purpose: This section focuses on short-term speculative opportunities by highlighting how current market price discounts or premiums might revert to the backing value. The table shows the spread of market price discounts between different tokens, allowing users to identify tokens that are potentially overpriced or underpriced relative to others.

• Table Features:

  • Comparative Analysis: Each cell in the table compares two tokens, showing the percentage difference between their current market prices and backing values.

  • Interpretation: A positive percentage indicates that the token in the row header is overpriced compared to the token in the column header, suggesting a potential arbitrage opportunity if the value reverts to the baseline.

APY in $ Arbs

The APY in $ is calculated based on the projected yield expected at the end of the stake for a specified amount invested today. The difference in APY percentages between tokens shows the potential additional yield that could be obtained by swapping from one token to another.

• Purpose: This section examines long-term arbitrage plays based on the APY (Annual Percentage Yield) differences between tokens. It helps users evaluate potential gains in yield by swapping one token for another and holding until redemption.

• Table Features:

  • APY Comparison: The table displays the difference in projected APY percentages between tokens. Positive values suggest additional APY gains by swapping into the token in the column header.

  • Interpretation: A positive percentage indicates the additional APY you will receive by swapping to this token compared to holding the column header token, suggesting a potential arbitrage opportunity at stake end.