I continue to maintain my LDOUSDT/AAVEUSDT long position.

In the image below, you can see that LDO and AAVE have been continuously correlated since March 2023.

However, we can see a period starting in July 2024 that resulted in a sharp rise in AAVE relative to LDO.

This means that the AAVE has been significantly overvalued relative to the LDO, or the price increase of the LDO has been milder.

This could be due to investors being more hype on AAVE or LDO's SEC filing.

However, in any case, AAVE and LDO are correlated assets and it is very likely that they will cross again in the future.

Therefore, I am long the LDO/AAVE pair by shorting AAVE and long LDO at the same time.

At this point, it doesn't matter if I am at a loss in AAVE or LDO (i.e. I don't need to predict the direction of the market.) All that is required is that I think LDO will appreciate more than AAVE.