Splinterland's: This is your time to take advantage of the DEC peg.
This is something going on my mind for a long time since people started talking about the DEC peg and the SPS flywheel. I can consider myself here little unlucky that I converted my DEC into CHAOS packs and CHAOS packs tanked. If CHAOS packs were able to surpass my DEC buy price, I guess I might be investing my liquid DEC heavily in these strategies. (Sorry my Lands, no DEC staking for you still and you have to wait more before I develop and put my DEC.)
DEC is always my favorite cryptocurrency and I like to maintain a very nice chunk of DEC in my game account or Hive-Engine wallet as liquid cash or accumulate it for buying packs from the game shop. When DEC was under the peg, it provided the nice discount by using DEC as payment in-game shop because the game shop accepts DEC always at the peg.
Now getting a discount in-game shop by using DEC does not help as such but I am going to list some other opportunities in which DEC being at the peg will help.
1. Swing trade.
I earned a lot of Hive in the past by predicting the direction of Hive price and DEC and converting my Hive to DEC or DEC to Hive. Since now DEC is at the peg, this now requires the prediction on Hive price only.
Let me explain, suppose you have 100K DEC whose equivalent value is $100. Also, you have 100 token A, priced at $1 per token, so its equivalent value also comes at $100. Let's assume, I saw a news/rumor and I expect a temporary dip in token A price. I will convert my all token A into DEC, which will give me 100K DEC, if Token A dips and reaches 80 cents, I will sell that DEC for token A, which will give me $100/.8 =125 Token A. Once token A reaches $1 again, my profit will be 25 Token A which will be equivalent to $25.
You can do on reverse way if you expect token A to increase, then convert DEC to token A, and rebuy DEC when token A starts trading high.
This works if you can predict the market and you can put it as a risky proposition so let me introduce a less risky proposition in the below methods.
2. Defi with Stable coins.
Pairing your DEC with a stable coin like USDC is giving more than 24% APR and pairing it with DAI gives 18%.
The caveat is here the payment is in the SPS and the amount of SPS to be distributed per day is fixed. So this APR is a direct function of the SPS price and TVL of the pool. Since both of these are dynamic, your APR will be.
3. Defi with SPS.
If you are already sold on the DEC-SPS flywheel narrative then this is the pool that you should be likely to be in.
But remember, SPS is a more volatile partner here in this defi pair/ pool, beware of the impermanent loss in this pool.
As usual, facts stated in earlier pools, APR will be also a variable that can move in any direction.
I hope you have enjoyed this article and feel free to research these strategies. APR mentioned above can fluctuate and nothing comes as risk-free, so DYOR, access your risks and take decisions.
Posted Using InLeo Alpha
