#BAYC $APE is pumping.
Likely on well-founded speculation that it’ll be essential currency in the #Otherside, though there’s no announcement from @yugalabs yet.
But there’s another way to profit off this craze if you don’t want to blindly ape into $APE.
👇🧵
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1) Create an account with @FTX_Official
ftx.com/#a=26470076
2) Buy $APE (spot buy APE/USD)
3) Sell same quantity of APE-PERP
4) Earn 15-20% APR risk-free
#3 is important. If you’ve bought 1,000 $APE, you should sell 1,000 APE-PERP
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How does this work?
APE-PERP is a “Perpetual Future”, and those holding long/short positions on it either pay or receive funding, depending on whether APE-PERP is trading above or below $APE.
So times like now when everyone is bullish on $APE, you get paid for shorting!
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As of writing, APE-PERP had positive funding of ~15% APR over the past 24 hours, and this will go up the more people become bullish on $APE
And the beauty is that it’s risk-free. Since you’re long $APE & short APE-PERP, you don’t lose money whether $APE goes ⬆️ or ⬇️!
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This is a passive-aggressive strategy, meaning you can lay back and enjoy the APE-PERP funding, but you need to regularly monitor the funding rates and get ready to close positions if it stops being profitable.
Bit of a hassle, but worth it for a market-neutral arbitrage! 🤑
You can read the unrolled version of this thread here: typefully.com/ellewq_/PvkLEYm
ellewq.sol | ellewq.eth
@ellewq_
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