In less than four months the value of DEC in terms of Hive is nearly back to where it was at end of last year. I am mentioning this because if I had done better arbitrage I could have easily doubled my liquidity. Here I explain how.
I have been stashing away my liquidity in pools on Bee Swap through once playing Dcity. I believe the type of pools Bee Swap access are also accessible to other platforms such as Tribaldex.
Speaking of Tribaldex the following is my overall liquidity in pools.
I am being as transparent as I can be without exposing my overall assets to minimize my account gets compromised. In around late Jan of 2025 my assets dip quite a bit due in part I took out my liquidity and swap for more Hive. This was when Hive soar and I was able to trade for some DEC and perform arbitrage.
What I did was spend some of my liquid Hive to buy up DEC. This was at around 0.0023 Hive per DEC. Then I held the DEC for a month or so when the value of DEC went back up and sold it for around 0.0028. I basically earned about 20% in that trade and it was all in liquid assets. I decided to go back into the pool after a couple of weeks with more invested while spend remaining profits on cards and staked some Hive to HP.
Had I held all the way to early March I would have gain even more as the price of Hive to DEC is now risen back to the highs. Yet I did not so its a lesson learned.
What is interesting to note is how I was able to somewhat time the bottom of the DEC to Hive ratio falling. The bottom came in around near end of December and I basically started buying DEC in early Jan. My thought was DEC is a peg token so functions like a stable token. Meanwhile Hive is the most important token on the Hive Blockchain so demand for the token will always be near the top. My risk was DEC continuing to drop, but I knew even with holding DEC I was limited on my asset price dropping due to it being peg. It was only a matter of time until DEC would rise back to peg as it was at the time below $0.001 / DEC.
What really played out was Hive is on a free fall in price. The selling of the altcoins is trickling into Hive. Yet because DEC is designed to be a peg token it was going to hold up in value.
In conclusion if I had to play this trade out again I would have done a couple of things differently. First I would have held onto my DEC longer and likely partake in a pool to earn passive income. Pool such as DEC and SPS where I still hold enough Splinterlands assets to not have impermanent loss. Another thing I regret is not going in with more invested. The more liquidity the bigger the arbitrage. I had a reasonable amount at the time close to $750-$1k in nominal value, but I wish I had stashed away a lot more in the liquid pool. At the time I had locked a bit in tokens to earn other items but if it had been in the liquidity pool I would have earned more.
Until next time thanks for reading!!!
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The Hive pump a few months ago was artificial. It looks like Hive wasn't able to keep up its price, and people want more DEC for the new set. It was a good idea for anyone who were able to stock up on DEC during that pump.