I'am afraid it can advance further up to $1.125, a... @officialjustlend

Asked 1075 days ago
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I'am afraid it can advance further up to $1.125, as at that rate it could be equally borrowed via justlend (at 75% LTV and market rate) or minted by locking TRX (at 67% LTV and pegged to $1 rate)

asked 1075 days ago

1 Answers

Answer:The maximum price of USDJ that can be reached is $1.50 due to the theory of arbitrage. This means that if the price of USDJ were to advance further up to $1.125, it would create an opportunity for traders to take advantage of the discrepancy in the market. By depositing TRX into Juststable and minting USDJ at a rate of 67% LTV and a pegged rate of $1, traders would be able to sell their USDJ for a profit of $0.125 per USDJ. This would create an incentive for traders to take advantage of this discrepancy in the market and cause the price of USDJ to rise above $1.50. However, this could also be achieved by borrowing USDJ at 75% LTV and a market rate of $1.125 via Justlend. Thus, the maximum price of USDJ that can be reached is $1.50.
answered 1075 days ago
0
usdj cannot be more than $1.50 by theory of arbitrage. Someone would deposit $150 of trx into juststable and mint 100 usdj and sell into $150. I think lots of bot is ready for that if it happened
answered 1075 days ago

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