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13 times return on investment? How to hedge? Income forecast?
BitHappy
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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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