#bstockscis
A stock costs $100, while its bStock is $102. A 2% premium? Not so fast š
With #bStocksCIS simply comparing the two prices isnāt enough. Thereās another parameter to consider: the sharesMultiplier.
Say a bStock costs $102 and its multiplier is 1.02. The calculation is:
$102 Ć· 1.02 = $100
The token looks $2 more expensive, but thereās no actual 2% premium. In this example, one bStock already represents economic exposure to roughly 1.02 underlying shares.
Where did that extra 0.02 come from? The multiplier can change after dividend reinvestments or corporate actions such as stock splits.
And even after adjusting for the multiplier, prices donāt have to match down to the last cent. bStock and underlying stock prices come from different data sources and may update at different intervals. In @BinanceCIS technical documentation, around Ā±0.1% is used as a reference range for normal deviation.
So a few cents of difference doesnāt automatically mean a bStock has ādepeggedā from the underlying share. And it definitely doesnāt mean weāve accidentally found easy arbitrage š
First check:
sharesMultiplier ā reference price ā actual deviation
Then we can start looking for something genuinely interesting in those two charts.
@BinanceCIS
A stock costs $100, while its bStock is $102. A 2% premium? Not so fast š
With #bStocksCIS simply comparing the two prices isnāt enough. Thereās another parameter to consider: the sharesMultiplier.
Say a bStock costs $102 and its multiplier is 1.02. The calculation is:
$102 Ć· 1.02 = $100
The token looks $2 more expensive, but thereās no actual 2% premium. In this example, one bStock already represents economic exposure to roughly 1.02 underlying shares.
Where did that extra 0.02 come from? The multiplier can change after dividend reinvestments or corporate actions such as stock splits.
And even after adjusting for the multiplier, prices donāt have to match down to the last cent. bStock and underlying stock prices come from different data sources and may update at different intervals. In @BinanceCIS technical documentation, around Ā±0.1% is used as a reference range for normal deviation.
So a few cents of difference doesnāt automatically mean a bStock has ādepeggedā from the underlying share. And it definitely doesnāt mean weāve accidentally found easy arbitrage š
First check:
sharesMultiplier ā reference price ā actual deviation
Then we can start looking for something genuinely interesting in those two charts.
@BinanceCIS