Congratulations to the lucky ones who got $MOVE and $ME. If you missed it, then you'd better not miss the recent Babylon third phase of staking, which lasts for about a week and has almost no upper limit. Genshin Impact is launched! 👇
This thread will also teach you how to get extra income by hedging gas! 🤔 Don’t miss it if you want to learn.
1. Interaction Strategy
The strategy is actually very simple, which is to take advantage of the low gas price and add more accounts. As for how much to store in each account and how many accounts to add, it depends on the individual.
🔗For staking details, follow their official Twitter.
The cost of interaction with @Babylon is obviously gas, so how to hedge against the cost increase caused by gas increase becomes the key. @alkimiya_io provides us with a way to hedge against the increase in BTC gas. 👇
2. How to hedge gas?
There are two ways:
1. If you expect BTC gas to rise in the next period of time, you can use wbtc on the Ethereum mainnet to go long on BTC gas (currently only supports the Ethereum mainnet, and will support long or short on base with cbBTC in the future). This is similar to spot trading. If you don’t have a position, you can’t sell or short. This is equivalent to making more money as Bitcoin gas rises.
2. Purchase BTC•FEERATE•RUNES on magic eden or unisat. These are runes issued by the project. Each rune represents a bullish position on BTC gas.
Calculation of hedging benefits for Method 1
Method 1 is very simple and clear. Sell when the average gas price rises, buy low and sell high. Or wait until the transaction time is up to settle.
The profit of buying low and selling high is easy to calculate. Let's talk about how the settlement is done when it expires (the redemption of runes is the same, the difference is that there is a 5% handling fee in this process). 🤔 The key index for the final settlement is the 7-day moving average. If your purchase price is 9sat/vB, the final settlement price is based on the 7-day moving average and is assumed to be 10sat/vB, then your profit is 1sat/vB per position.
Calculation of hedging benefits for Method 2
Method 2 is very similar to method 1. For example, if you expect the average gas price to rise, you can buy and sell runes on the secondary market magic eden to make a profit. You can also redemption before the transaction ends and exchange runes for pie.
The redemption of runes will deduct a 5% handling fee from the above profits. If you think that BTC gas will increase in the future, you can use this method to reduce the cost of participating in inscriptions, runes or Papillon staking activities.
If Papillon’s products are launched on Pendle in the future, you can also pay attention to it. If the points multiplier is very high, you can consider participating.
For example, this time usual’s YT points earnings exceeded 100 times at the beginning, and the final earnings were 10 times of directly depositing money. The editor has already broken his thighs even though he did not participate in usual YT!
💡 Risk warning: The above is for information sharing only, not investment advice.
