Wrapped Bitcoin Pickle Jar

Reposting this as requested into its own separate thread for discussion

I would love to see a strategy involving a wrapped Bitcoin stablecoin pool. Right now Bitcoin holders only have one viable option to park their Bitcoin: Curve. They can choose from two options: either the renBTC or sBTC pool.

This represents an opportunity for the Pickle team to capture value, as many Curve LPs would love yield competition for their wrapped Bitcoin. Right now there is ~$317M in Bitcoin locked in Curve. wBTC is also the fastest growing assets with ~$810M TVL.

With all the different flavors of wrapped Bitcoin: wBTC, renBTC, sBTC, hBTC, tBTC, etc. There is a price spread between each individual token. Pickle can implement an arbitrage strategy either using Curve or a yet to be invented strategy to capture this value.

Pickle will also receive positive optics for being the SECOND viable option for Bitcoiners to park their money in, can capture more TVL, and ultimately this will increase the value of $PICKLE.

Pros/Cons? What does everyone think? Let’s discuss.

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Funny that I had the same idea yesterday before I went to sleep :smiley:
I think this would be great.
Immediately afterwards I also thought about gold. I know at least 2: XAUT and PAXG that should match the gold price but not really

From the article above:

XAUT which is trading for $1,938 per ounce as opposed to the spot price of gold’s $1,926.
PAXG token also carries a small premium right now over the spot price of gold today at $1,934.

I understand Gold would be superniche, but thought to throw it out there as it matches the philosophy of making the asset closer to the Peg

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hey guys amazing idea - any asset off-peg should be a viable target for pickle :wink:

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Absolutely.

This is my mega-bull thesis on pickle.

It doesn’t need to be stable coins. As some folks have pointed out, arbitrage bots are already doing their thing and while there are opportunities, there may be not as many as there once was.

With other pegged assets (BTC variations, ETH variation, even yield-bearing dollar), there’s even more opportunity.

With the growing introduction of other synthetic assets that are pegged to real world assets, this list will continue to grow. sAPPL arbitrage. paxG arbitrage, sTSLA arbitrage. I know this is a long ways off, but if we really do have top minds working for pickle on the large scale arbitrage strategies, there’s no reason we can’t be at the forefront of profiting from all these opportunities.

#GetPICKLED world

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oh my my man, you just got me hyped af - we can be indeed stabilising all the synths out there (those share derivatives looks sexy indeed).

BTW I wonder if there is a possibility to introduce a unified pool where we can shift focus from to pegged derivatives that swung too far from underlying asset’s value.

Having pickle-eth pool where you agree that eth will be switched to different assets to improve returns - that would be neat… not sure if possible thou.

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A little off-topic, but in a similar vein, to add to the bull thesis. Another type of arbitrage:

Perpetual swaps are supposed to trade close to their underlying asset, but in practice they are slightly off and in addition generate fees depending on the balance between longs vs shorts. (Either shorts pay longs or vice versa).

I know that on FTX, for example, this results in insane APY equivalents for some assets (like >200k%).

I wonder if this is another kind of arbitrage that PICKLE could take advantage of once DEX-traded derivatives become a thing…

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an idea worth a king among brinsaurus :grinning:

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Interesting idea!

But if we’re using flashloans and doing a basic arbitrage, then why do we even need people to deposit into the jars? We can literally print the money and make that spread immediately. Is this kind of like a “deposit your tokens if you want a cut of this” kind of deal?

I want to see this get fleshed out more.

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If we are shorting the over-priced priced tokens and are buying the under-priced tokens, we still need to hold collateral for the shorts until we can unroll the trade at a profit when the prices converge.
My main concern with such a strategy is, that the interest rate paid on the short could cut deep into the trading profits, so getting and keep switching to the cheapest loans is crucial here.

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Until a member of the team comments here in support - I am against.
Briner’s input was pretty neutral but I am not seeing the value here especially considering competition from arb bots and the like which are already implemented and sophisticated.

It is better for us instead to focus on the farming and providing value to users and PICKLE token than pursuing this strategy - which actually could result in losing money if we get front run!

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Don’t understand what would be the difference between making wbtc and similar closer to peg VS making stablecoins closer to peg - which is the Mission of the whole pickle project.
By saying your against the first, aren’t you automatically against the second? Are you saying that there are no bots on the stablecoin markets?

yep agree this is just vertical expansion - operation in the same class of assets. Would not make us more exposed, just more comprehensive :wink:

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I like the wBTC idea. but just to play devil’s advocate in the short term.

If traditional markets decide to take a massive doo-doo on everyone, do we have strategies in place to hedge our positions?

Apparently proposal is already in, by Core team: