13 times return share? How to hedge? Expected yield?

13 times return on shares? How to hedge? Expected earnings?

Everyone guesses that Huma is a big player, so the deposit limits have quickly run out several times, but there is still an arbitrage opportunity now!

➤ The following information comes from Jup DAO and Huma's announcement:

1) 1% of the total supply of Huma tokens is allocated for presale to $JUP stakers;

2) Huma token has a $75M FDV;

3) Voting time is four days: May 18 - May 22;

➤ Additional information:

0) The unlocking time for staked JUP is 30 days;

1) According to the pre-market price of Huma, FDV is 1B;

2) 1B / 75M = 13.33, which means that after $JUP stakers participate in the presale, it is estimated they can get a 13 times return;

➤ Logical analysis:

0) Stake JUP to participate in the vote (it seems like there may be participation without voting as well);

1) If you don’t have JUP, you can obtain it through lending or contract hedging and stake it.

2) Borrow JUP at a 10% interest rate;

3) Voting time is 4 days, and everyone speculates that the TGE will likely be in June, so the time cost may only be 11 days plus the 30 days of unlocking, a total of 41 days;

4) The actual interest to be paid over 41 days is 10% / 365 * 41 = 1.12%;

5) You will only incur a loss if the allocated amount is below 1.12% / 13 = 0.086% of the staked amount;

Note: 13 times is just an estimate, but Huma's market sentiment and pre-market situation are quite good;

Remarks: The core protocols are jup_dao and humafinance;

Operation: Use idle assets to borrow JUP, withdraw to your wallet, stake it in Jup DAO, and finally participate in the vote while waiting for subsequent allocation!
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DeFi enthusiasts: BitHappy