Arbing UST

I’m trying to arb UST.

I’ve got UST. I should be able to market swap them for $1 worth of LUNA using the terra station. Right?

I get a much lower value than $1.


At point of writing, luna = $7.59. With 1000 UST, i should be getting 131 LUNA. But the swap proposes 89 LUNA. Why? Am I forgetting a step?

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8 thoughts on “Arbing UST”

  1. Yea so theres a built in thing where at times of high volatility, the oracle price doesn’t apply, you get a spread. you see that spread of 41.08 Luna? that’s basically your money being burnt to keep the protocol alive. They cut out the arbitragers, when they are needed the most. Bad tokenomics. This is going all the way to 0

  2. LUNA mkt cap = $1,933,612,949

    UST mkt cap = $5,203,936,682

    The fundamental promise that you can swap $1 of UST for $1 of LUNA is impossible right now.

  3. In any case, I believe TFM is the best for any type of trade in the Terra ecosystem at the moment because, as a DEX aggregator, it’s now available as an option for Terra ecosystem traders, making it very easy to make trades at the best price, which, combined with Terra’s low transaction fees, makes the ground super prime.

  4. I’ll suggest that you use TFM for your trading instead, especially if you want to arb UST. The rates on your post are ridiculous considering the rate that the swap was being traded at tfm yesterday. I can imagine how many people took advantage of the most historical dip of all time.


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