The Accumulator
How does 15%/week sound to you?
The Accumulator is a feature of LSteak (https://www.lsteak.app/) , which is one of the offshoot projects from the Dexfi Bond system, and the team originally behind Emp.Money.
What the Accumulator does is purchase LSteak when it is at a discount to its Backing Per Token (BPT), which is composed of Dexfi Bonds, Gold, Bitcoin and Ethereum.
The spread between the Market Price of LSteak vs BPT is where the arbitrage emerges.
The Acccumulator is a weekly rolling vault system designed to deposit USDC, buy LSTEAK when BPT gaps appear, and convert accumulated LSTEAK into xl-LSteak for compounding.
One full week open for USDC Deposits, then one full week swapped to xl-LSteak to accumulate value.
In my initial experiment I received around 15% yield from the most recent round ending this Sunday, August 23th. Since there was only $0.75 cents worth of USDC left in the Accumulator, I decided to remove it after the 4th day in the Accumulator, take the -10% hit on the $0.75 cents of USDC remaining, and swap everything back to USDC.
On its face, the xl-LSteak was worth 33% over what I had invested ($1,000 USDC). After redeeming back to LSteak, then USDC, I had made around 15% over my initial deposit of $1,000 USDC.
Not sure if I would have a larger value if I just kept the xl-LSteak in the Accumulator till the end of the week, but the 33% seemed decent enough to pull it and swap. I’ll monitor the price of XLSteak on the next round starting Monday, August 24th. This time I will likely just leave it in till the final day before I convert to USDC.
The current 15% return, annualized would be 780%. Likely will not have such a big gap every week, but if others are buying and selling as I am doing then the gap may remain.
The Accumulator value can be seen added on the Dashboard. But, I want to redeem the Xl-LSteak back to USDC to move back into the Accumulator. Since xl-LSteak is worth 1.05-to-1 with LSteak, I figure that the return will be more like $163 or 16% than the dashboard’s value of $1336.73, or 33%.
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Let’s see the result after I redeem the XLSteak to LSteak, then sell to USDC.
Turns out once I redeemed to LSteak, then swapped to USDC, it was $155 yield, or a 15.5% gain. Hmm, 15% gain in 7 days. That’s an Annualized 780% gain.
There’s still a 16% arbitrage between the Market Price of LSteak, and the BPT, so with that excellent return I will be redepositing the 1,155 USDC.
Rinse and repeat.
Conclusion
When there’s a gap between the market price of LSteak and BPT, there’s an arbitrage opportunity that presents itself to investors. Last week I went in with $1,000 USDC, and 7 days later came out with 1,155. I see that there is another gap for this next round, starting tomorrow August 24th at 8:19pm. A quick look at the LSteak Dashboard page and I see a setup for another banner week:
Difference of 19.46%, which is wider than the 16.04% I entered last time. This is shaping up to be an even bigger week than the last. Still have a another day before this next weeks Accumulator window closes.
Read More
Resources:
- Website: https://www.lsteak.app/
- Deposit token: USDC (BASE)
- Telegram: @Lsteak_Protocol
Nothing in this article is intended to constitute investment advice. Neither the author nor the publication takes any responsibility or liability for any investments, profits or losses you may incur as a result of this information. Readers are encouraged to perform their own due diligence and research, or consult a licensed financial advisor or broker before making any and all investment decisions. This content is intended for general informational and educational purposes only. Though the author strives for accuracy, the data contained within the article cannot be relied upon. The author may own cryptocurrencies and tokens discussed in the article. The article may contain affiliate links.
