Answer: If the price of ETH recovers, it could incentivize external traders to swap back CRVUSD. This would mean that the price of CRVUSD on the CurvePool AMM would have less ETH and more CRVUSD. As the price of CRVUSD is usually at a discount to the oracle price, the pegkeeper would then trigger a provide liquidity action to withdraw ETH from the CurvePool AMM. This would help to keep the price of CRVUSD in line with the oracle price.
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
