OKX’s Jumpstart new coin mining activity officially begins today. Due to the limited participation of users using TON tokens for mining, the borrowing interest rate for TON tokens has soared to 365%. Are there any arbitrage opportunities?
(Previous Summary:
Dark horse in the market! TON’s TVL has surged by 400% in the past two months, and its price has risen by 20% in a week, reaching a new historical high.)
(Background Supplement:
Telegram game Notcoin listed on Binance and OKX’s “new coin mining,” TON jumps 10% again surpassing Dogecoin.)
Table of Contents:
OKX Jumpstart launches Notcoin new coin mining rules
$TON borrowing interest rate soars to 365%
Is it profitable to borrow TON for mining?
Can TON be borrowed for arbitrage?
TON’s recent 24-hour increase is as high as 5.8%.
Backed by the communication giant Telegram, TON’s popular mobile mining game Notcoin has launched on the exchange platforms Binance Launchpool and OKX’s Jumpstart for new coin mining. Due to OKX Jumpstart’s restriction that only users can participate in mining using TON tokens, the borrowing interest rate for TON tokens has soared to an annualized rate of 365%.
On Thursday (9), OKX announced that the new coin mining activity for Notcoin would be launched on Jumpstart today. The following are the rules of the activity:
– The participation time for OKX’s Notcoin new coin mining is from May 13th, 14:00, to May 16th, 16:00.
– OKX will use the method of pledging TON tokens for mining, and the more tokens pledged, the higher the earnings. However, the individual pledge limit is 4,000 TON.
– OKX Jumpstart does not support users from mainland China, Hong Kong, and South Korea to participate.
– The OKX Notcoin Launchpool has a total of 1,283,990,271 NOT tokens, accounting for 1.25% of its total supply.
Due to the high popularity of Notcoin new coin mining, the borrowing interest rate for TON tokens on the OKX exchange has surged to 365%. At the time of writing, due to excessive demand for borrowing, OKX loans have reached a situation where it is not possible to borrow TON tokens.
At the same time, the borrowing interest rate for TON on another exchange, Bybit, has also reached 283.8%.
Why do many people borrow TON and participate in mining activities despite the high borrowing interest rate? Perhaps we can observe the returns of previous OKX Jumpstart phases.
Firstly, Notcoin’s new coin mining lasts for three days. Assuming we need to borrow TON with a 365% annual borrowing interest rate for three days, an average daily interest payment of 1% is required. In other words, to offset the interest, the new coin activity needs to achieve a return on investment of 3% of the principal (365% annual return rate).
According to the previous six OKX Jumpstart new coin mining activities, the highest annual return for projects has been in the hundreds to thousands of percentage points, with an average annual return rate of 998%. However, the lowest return rate for the MSN token is only 294% annually. This means that participating in new coin mining with high borrowing interest rates is not a guaranteed profit. Users should analyze the risks themselves.
On the other hand, according to the largest lending protocol on the TON ecosystem, @evaaprotocol, the current borrowing interest rate for TON is 72.66%. This means that there is a huge difference in borrowing interest rates between on-chain protocols and exchanges, which may present arbitrage opportunities on both sides.
However, this protocol requires assets to be deposited first (with 65% available for borrowing), and there are also some transaction fees to consider in the process of lending TON. Furthermore, the protocol is relatively new and has not undergone solid verification in terms of security. Therefore, users should carefully consider the risks before borrowing.
In terms of price, possibly influenced by the Notcoin new coin mining activity, according to Coingecko data, TON has seen a 5.8% increase in the past 24 hours, with a current price of $7.34.
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