So, seems that centralized exchanges show again their true colors. You can never fully trust them uh?
Just had one of these experiences with my trading games around Bybit. If you guessed 'gridbots, for sho' (introduced on my last post) you guessed right.
Gridbots, Too good to be true (once again).
I tested my gridbot for more than a week and the numbers simply added up. Bybit does not explicitly make clear its numbers for calculating the APRs shown. As I was clearly missing something.
Then I did the simplest of the calculations. And oh god. See that number anon? Ok.
Now check that:
BUT WAIT THERE'S MORE:
You can't imagine how extra salty & pissed was when I found out that. That's what happens when you fuck around with CEXes LMAO. I laughed at myself for not checking the simplest of metrics. You live to learn.
In case you're not noticing, let me explain.
- The top1 ranked bot started operating on the EXACT DATE of the previous November bottom. This bot made a pretty decent return for its operators of approx +60% in that timeframe (266 days).
But the problem is, Bybit is counting as the 'profit' of the bot itself the spot price increase, where they shouldn't IMHO. If you're running an arbitrage bot I'm expecting to know your profit ON TOP OF the spot price. Or in other words, the profit from the arbitraging itself, not the price movements of the underlying assets.
- Not only that but the fact of not being able to beat the spot market. Ok, I understand that you're both on BTC+USDT but holding plain BTC would have yielded an extra +20% Vs the bot. Again, how is that even an edge? I only see fuckery made to overtrade and generate more trading fees for the exchange.
Needless to say, I shutted down my bot and moved elsewhere.
Refactoring my Trading Strategy
I like being able to take borrows on top of stETH while it keeps generating passive ETH without any added gas fees. That's a strategy that I like a lot and suits me perfectly in my journey of playing/learning leverage.
Said that I've decided to increase a bit my risk appetite and started trying with solid alts with decent staking returns, like (coff coff) , HIVE and SPS.
Splinterlands pools on Hive Engine for SPL assets are very good to pass. And it's 99,9% clear to me that there are no vastly better returns out there (staking-wise). Even less in centralized exchanges.
Said and done, All my leverage for this account is sitting there:
Overall portfolio looks like that:
0.54 stETH already accumulated and deposited into a Bybit loan, for a 641 USDC debt position, used to stake into the HIVE+SPS Pool for a +35% APR. Will keep adding stETH periodically while I keep accumulating stake into the pool with borrowed funds.
aaand that's all for this journal. Have a nice week!
