Here are a few thoughts for the day. The ARB strategy is going well with the assumption that both tBTC and WBTC are equal in price to BTC, but this is not true. I think this is so because of the availability of the two. In particular, tBTC is decentralized and has a higher collateral to mint and they’re less in price as it prices in that collateral premium. For the past week, I’ve been swapping WBTC for tBTC all in one direction. I am anticipating the BOB gateway to open the other way to go from EVM to the BTC chain. I think that will increase demand for tBTC for that is the product that ETH users can bridge permissionless to BTC.

Another strategy I was thinking of is to add to the WBTC/tBTC LP and close the margin, and claw back fees on each trade. This way I have one revenue from my arb trades which are paying a fee to the pool, and another which will be earning the fees from the same pool.

I find it fascinating these Defi products are finally arriving in the BTC ecosystem. Uniswap, Blancer, and Aave have brought tremendous innovation to Defi, but the challenge is that since they are open source anyone can fork and repackage the protocols and start a new business. This is why I think those Governance tokens they provide are in practice similar to securities. I do not say they are because they also have other utility and other bells and whistles attached to the token.

Here are a few thoughts for the day. The ARB strategy is going well with the assumption that both tBTC and WBTC are equal in price to BTC, but this is not true. I think this is so because of the availability of the two. In particular, tBTC is decentralized and has a higher collateral to mint and they’re less in price as it prices in that collateral premium. For the past week, I’ve been swapping WBTC for tBTC all in one direction. I am anticipating the BOB gateway to open the other way to go from EVM to the BTC chain. I think that will increase demand for tBTC for that is the product that ETH users can bridge permissionless to BTC.

Another strategy I was thinking of is to add to the WBTC/tBTC LP and close the margin, and claw back fees on each trade. This way I have one revenue from my arb trades which are paying a fee to the pool, and another which will be earning the fees from the same pool.

I find it fascinating these Defi products are finally arriving in the BTC ecosystem. Uniswap, Blancer, and Aave have brought tremendous innovation to Defi, but the challenge is that since they are open source anyone can fork and repackage the protocols and start a new business. This is why I think those Governance tokens they provide are in practice similar to securities. I do not say they are because they also have other utility and other bells and whistles attached to the token.