Two Ethereum DeFi traders just made $120M using a strategy called 'looping'

Re:Two Ethereum DeFi traders just made $120M using a strateg... by fuhrtf on Thursday February 15, 2024 @06:31PM (#39390798)

Basically they’re just using their own money and leveraging 2x. Does that sound about right?

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Re:Two Ethereum DeFi traders just made $120M using a strateg... by sushid on Thursday February 15, 2024 @07:54PM (#39391620)

Yes it's literally just leveraging

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Re:Two Ethereum DeFi traders just made $120M using a strateg... by m3m3tic on Thursday February 15, 2024 @08:34PM (#39391945)

it's recursive leveraging using multiple different market makers that are giving you further leveraged bets on already leveraged assets

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Re:Two Ethereum DeFi traders just made $120M using a strateg... by JumpCrisscross on Thursday February 15, 2024 @08:53PM (#39392112)

> it's recursive leveraging using multiple different market makers that are giving you further leveraged bets on already leveraged assets

This is approximately what Bill Hwang was indicted for doing [1].

[1] https://www.wsj.com/articles/archegos-founder-and-cfo-charge...

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Re:Two Ethereum DeFi traders just made $120M using a strateg... by throwawaymaths on Thursday February 15, 2024 @09:23PM (#39392345)

You don't suppose he got in trouble with the law because he was doing it with other people's money (and not telling them that's what he was doing)?

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Re:Two Ethereum DeFi traders just made $120M using a strateg... by sushid on Friday February 16, 2024 @04:30AM (#39394952)

What do you think leveraging is? You are using your deposit (ETH) to increase exposure to an asset (more ETH). The process is just more manual compared to a traditional market because crypto.

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