There's a concept here I can't grasp So let's say ... @curvefi

Asked 1078 days ago
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There's a concept here I can't grasp So let's say I use 1ETH to mint crvUSD with a certain LTV, and I keep holding crvUSD in my wallet, who's the crvUSD liquidity provider in the crvUSD/ETH pool that will make it possible to trade back and forth the ETH collateral? Or is crvUSD minted if needed, for ETH to get swapped back to it on the way down?

asked 1078 days ago

1 Answers

Answer: When you mint crvUSD with 1ETH, you are essentially providing liquidity to the crvUSD/ETH pool. This means that when someone wants to trade ETH for crvUSD, they can do so by purchasing it from the pool, and when someone wants to trade crvUSD for ETH, they can do so by selling it to the pool. This liquidity is provided by the users who mint crvUSD in exchange for ETH, and the crvUSD is created on demand when needed for ETH to be swapped back to it.
answered 1078 days ago
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Basically someone will need to sell crvUSD to the pool
answered 1078 days ago

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