Abraxas Capital Strategy: Money glitch explained.
Institutions have discovered DeFi and Abraxas is leading the way.
Abraxas Capital leveraged a $3 billion USDT loan from @aave, swapping $1.24 billion USDS/USDC via @sparkdotfi PSM, to exploit a 0.0008% price lag between DeFi oracles and CEX markets, earning $47,000 in two minutes, (a strategy validated by a 2023 Journal of Financial Economics study showing algorithmic arbitrage yields 0.1-0.5% daily returns at scale)
This high-frequency arbitrage, requiring millisecond execution and $100m+ capital, reflects a shift from retail-driven DeFi to institutional dominance, contrasting with Chainalysis 2024 data where only 0.5% of crypto volume involves such tactics, challenging the narrative of crypto as a democratized market.
The zero-net-exposure model, cycling $7.59 billion with no residual risk, mirrors traditional finance’s high-frequency trading evolution, as noted in the SEC’s 2021 market structure report, highlighting how DeFi protocols are maturing into infrastructure for sophisticated financial strategies.
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