To Buy or Not to Buy

As of February 8th, 2023, the sale of DEC-B started in-game at Splinterlands. As per this post, the sale will continue for 60 days, till April 09, 2023. During this period players can convert DEC to DEC-B at a 20% discount. Also they can convert Vouchers at a discount. Trouble is at the current market DEC is selling at 27% discount to peg (1000 DEC = $1), so there is no reason to convert in-game. People can just buy DEC and hold at the market until the market price is higher than 1000 DEC = $0.80. So there is no arbitrage opportunity using DEC. However, there is using Voucher, but with a catch! The numbers get confusing quickly because of many tokens and their variable prices, so I made a simple table:

Obviously, these are based on current market prices, which fluctuates, but this gives a simplistic view of the arbitrage opportunity using Vouchers.

So, what is the catch?

Catch are as follows:

1. Currently DEC-B is not flexible. There is no current use. Even in future, the use of DEC-B will be more limited compared to DEC. It is better to buy and hold DEC, as long as the price is below 80 cents for 1000 DEC. Probably maybe a bit higher if you consider the flexibility.

2. At current prices of Vouchers, there is an opportunity, but it is unlikely that it is very usuable. As Voucher market is thin, it will be prone to price rally as more Vouchers are purchased from the market.

3. There is always potential that Voucher prices can drop even further.

That said, I have still bought some vouchers from the market

I have just above 40,000 vouchers, that I can convert to DEC-B. To do that, I have to transfer it to 'in-game' from SPS chain. Let us do that!

Now, I can convert those 40K Vouchers to 8M DEC-B; for better or for worse!

And.....with that, as I click the button!

I have 8M DEC-B!

For the record, I do not like DEC-B. I did vote for that proposal and regretted it. I shouldn't have done that. However, in the end, I am a team player. Since the proposal is passed, I should play my part.

Here you go: This is azircon (the bad guy) playing his part

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The Splinterlands