Friends who follow me should know that I first opened a position in July.
Basically, 3500u of Eth was replaced by 20,000 Sui of about 0.85u.
The idea at that time was very simple, that is, Sui's speed was fast and the handling fee was very low, basically less than 1 cent.
Later, the price of Sui also fell from 0.85u to 0.47, and then Sui started to rise violently, becoming a frequent visitor on Binance's growth list.
Around September, I added 1w U from the price of sol 137 and sui 1.02.
Since grid trading was enabled, the profit was about 3000u, plus the on-chain arbitrage, this time Sui basically doubled, I am satisfied.
There are several reasons why Sui can rise violently:
1. Solid foundation. Speed and good on-chain transaction experience.
2. Sui Foundation, the ecological subsidy for Sui, opened the way for Sui to ascend to heaven with his left foot stepping on his right foot.
It can be said that this is the key to pull up. In the ecology of Sui, there are debt scallop, suilend and liquidity pool cetus.
Due to Sui's subsidies to the ecosystem, basically you can earn interest on loans, and the lending income of stablecoins can reach more than 10%.
In this way, you can pledge sui to suilend and borrow usdt, then pledge usdt to scallop and borrow sui from scallop.
In this way, the leverage and income will increase. Please pay attention to the risk of liquidation.
I used about 3 times leverage at that time. Basically, the annual return can easily reach 40%, and there are suilend points to be earned, and you can wait for suilend's airdrop.
This was the main reason why I added Sui to my position at around 1.02 for the second time. At that time, I also borrowed 15,000 Sui from Binance by pledging BTC to participate in Sui’s on-chain activities.
It is the ecological subsidy on the Sui chain that has opened Sui's path to ascension.
You can think about it, the influx of arbitrage funds will inevitably increase the lock-up value on the sui chain, thereby increasing the price.
The increase in price will inevitably attract more arbitrage funds to enter. Even if there is no more arbitrage funds entering, if the price doubles, the locked value on the chain will almost double.
3. Launch native USDC
4. Establishment of Grayscale Sui Trust Fund
I estimate that there will be good market for Sui in the future, but I still choose to sell Sui for the following reasons:
1. There are more and more posts advocating Sui, and some even claim that it will soon surpass Sol.
I personally think this is a dangerous signal. I guess these people don’t use the sol chain much and don’t know what ecosystem is on the sol chain.
There is no comparison between the smoothness of the sui ecosystem and the sol ecosystem.
Even if Sol stands still and waits for you, the total market value reaches Sol, Sui will have a 5-fold increase.
In the past week, errors have frequently occurred on suilend and scallop.
2. I don’t know when the sui ecological subsidy will stop
The sui ecosystem subsidizes sol and eth, and even without leverage, it can reach an annualized rate of more than 30%. This subsidy is unsustainable.
Later, I figured out the problem and closed the arbitrage positions little by little at 2 a.m.
3. Eco-currency Sca is no longer rising
Keep writing, and in the next post I will tell you why I chose arb, cake and tia.
