New age of $PHMN — we will be the perfect tool for arbitrage in the interests of Community
Math is for us!
If Proposal #4 in POSTHUMAN DAS will pass — it will start new age of $PHMN!
Looks like not everyone understand this easy mathematics, so I need to explain what does it means in common words!
For now, we have PHMN-JUNO LP at JunoSwap:
It means, people can easily change $PHMN for $JUNO, and $JUNO for $PHMN.
This liquidity (~150K at the moment off writing this article) is under control of POSTHUMAN DAS, and all exchange fees (0.3%) is returning back to the Community!
Also, we have 2 Liquidity Pools with ATOM-JUNO at Osmosis and JunoSwap
This pools are not controlled by POSTHUMAN DAS, so exchange fees go to liquidity providers.
If Proposal #4 will pass, we will create PHMN-ATOM Liquidity Pool at Osmosis Frontier. And this pool will be under control of POSTHUMAN DAS, so it means, that all exchange fees will return back to the Community!
Now, let’s imagine what will be:
- We have 3 liquidity pools: ATOM-JUNO, PHMN-JUNO, PHMN-ATOM
- Most of exchange fees from PHMN-ATOM and PHMN-JUNO will go to liquidity providers, and POSTHUMAN DAS is the main liquidity provider of this pools!
For example, and for the moment, 98% of liquidity in PHMN-JUNO pool is provided by POSTHUMAN DAS!
3. The same situation we will have for the PHMN-ATOM pool at the Osmosis Frontier. It means, that every time somebody exchange PHMN for ATOM, or JUNO for PHMN, or ATOM for PHMN, or PHMN for JUNO — POSTHUMAN DAS earn near to 0.3% of this exchange! It means — our Community earn it, as the main liquidity provider!
4. If we have 3 pools, then any disbalance in one of them, will open good opportunity for arbitrage!
ATOM-JUNO LP: 1 $ATOM = 5 $JUNO
PHMN-JUNO LP: 1 $PHMN = 10 $JUNO
PHMN-ATOM LP: 1 $PHMN = 2 $ATOM
In this situation no opportunities for arbitrage!
But as soon as balance of one of this LPs will be changed a little bit (for example, somebody will exchange $ATOM for $JUNO), disbalance in ATOM-JUNO LP will open opportunity to exchange $JUNO for $PHMN, than $PHMN for $ATOM, than $ATOM for $JUNO → and get more $JUNO than was before!
Or this circle can work in other direction:
$ATOM → $PHMN → $JUNO → $ATOM and get more $ATOM!
Or it can be:
$PHMN → $ATOM → $JUNO → $PHMN and get more $PHMN than it was before!
This circles will work in different sides, depends of market situation!
And all the time, it will be profitable as for person who make arbitrage, as for the Community, because every exchange in ATOM-PHMN and JUNO-PHMN LPs will bring 0.3% into POSTHUMAN DAS!
And this circles will never end, as somebody will always exchange $JUNO for $ATOM, or $ATOM for $JUNO…
Total Win-Win! And nobody lose nothing!
Of course, it will depends of amount of arbitrage, and it will be more profitable for small players. Big players will lose to much on slippage in LPs, but for small players it will be the perfect tool to earn 5–10$ just for 3 transactions!
So, friends, if you still have questions ab out this beautiful math scheme — feel free to ask us in our community chats: