could u explain briefly? does that mean external t... @curvefi

Asked 1059 days ago
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could u explain briefly? does that mean external trader would be incentivized to send in ETH to swap back crvUSD, when eth price rebounds? I thought band price is always at discount to oracle price, what do I miss

asked 1059 days ago

1 Answers

Answer: Yes, external traders would be incentivized to send in ETH to swap back CRVUSD when ETH price rebounds. This is because the band price of CRVUSD is always at a discount to the oracle price, meaning that the external trader would be able to buy CRVUSD at a lower price than what the market is currently trading at. This incentivizes external traders to send in ETH to swap back CRVUSD when ETH prices rise, as they can take advantage of the discount and purchase CRVUSD at a lower price.
answered 1059 days ago
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Did you read the paper?
answered 1059 days ago

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