Did anyone respond to this FUD?

here you go

Attached: boring fud.png (2346x859, 193.01K)

but you're saying wrong/false to things that are not wrong/false

such as?

just 1 example of that:

you are saying it's false when OP wrote "even if the protocol has accumulated a deep pool of excess RSV through collateral appreciation and tx fees, arbitrage with RSR would still only be possible if RSV trades above $1"

what you copied in response is a collateral to RSV arbitrage (no RSR needed), but OP talked specifically about RSR to RSV arbitrage

the dev said he is going to get nevin to take a look

3) Even if the protocol has accumulated a deep pool of excess RSV through collateral appreciation and tx fees, arbitrage with RSR would still ONLY be possible if RSV trades above $1 and ONLY for the quantity of RSV that is being sold above $1. Why would anyone buy RSV above $1? Rational/educated market participants who move large quantities of capital WONT, because if they wanted to buy/use RSV they could instead just mint it for $1 worth of collateral tokens instead of buying from the market for a PREMIUM price. Thus, one would project that the quantity of RSV trading above the peg is minimal, resulting in a very low level of utilization for the potential excess pool of RSV, which means close to NO ARBITRAGE REVENUE FOR RSR HOLDERS.

>Why would anyone buy RSV above $1? Rational/educated market participants who move large quantities of capital WONT

Have you ever seen Tether during Bitcoin volatility? People pay a "PREMIUM" for stablecoins all the time because it beats losing thousands of dollars when BTC starts to dump.

>because if they wanted to buy/use RSV they could instead just mint it for $1 worth of collateral tokens instead of buying from the market for a PREMIUM price
Yes, exactly, instead of buying RSV they could mint it as stated in the whitepapers, and bring the price back down to $1.

>Thus, one would project that the quantity of RSV trading above the peg is minimal, resulting in a very low level of utilization for the potential excess pool of RSV, which means close to NO ARBITRAGE REVENUE FOR RSR HOLDERS.

Except when there's high volatility in the market (again assuming that RSV will only be traded on some exchange), the reality is that RSV is targeting people that will be using an APP and have no control over what they bid for RSV at the time of purchase, they will buy it a higher rates because it beats losing money to a hyperinflated or highly inflated fiat currency but the same applies to exchanges during times of Bitcoin volatility.

can you make sure that he responds to the picture ITT because there are other versions of the copy-pasta out there with less text where the arguments are not explained like the one here

You have to continue reading

I went point by point and responded to each point being made.

I read everything

did you get what I meant? That your answer was not accurate because you copy-pasted about a different type of arbitrage than the one OP talked about

He's mixing two different types of arbitrage in his post. If he's talking about RSR arbitrage which burns RSR by buying excess RSV then yes, you can only get excess RSV if there is excess RSV available, but he's talking about RSV selling above $1 and how the only way to arbitrage is if RSV is trading above $1. This is wrong, you can arbitrage RSV below OR above $1.

>similiar to BNB
ponzi scam confirmed.

Attached: dontbuystaypoor.png (945x745, 265.24K)

why don't you join the official telegram and ask Charlie directly user?

Attached: askanon.png (523x435, 85.6K)

all you have to know about RSR is that it's competing against tether / USDC. it's like a new search engine company competing against google. baka

OP is clearly talking only about RSR to RSV arbitrage. From Reserve medium post:

"Here is a brief overview of how RSR arbitrage trading works: When RSV is trading above $1.00 on exchanges, any excess RSV tokens in this pool can be purchased from the Reserve smart contract by RSR holders exclusively for $1.00 worth of RSR. Once the purchase is made, RSR tokens are burned.

For example, say RSV was trading at $1.02. In this scenario, participants could buy $1.00 worth of RSR on an exchange. If there is excess RSV in the Reserve vault, RSR holders could then use the $1.00 worth of RSR to purchase the stablecoin through Reserve’s smart contract. Once in possession of RSV, these token holders could go back to an exchange and sell the RSV at market price, making a profit of two cents per token."

this is what OP was talking about, but you're talking about RSV to collateral arbitrage which can happen both - when RSV is trading under and above the peg.

No, OP is ASSUMING that no one will pay more than $1 for RSV, he is then continuing to assume that BECAUSE no one would pay more than $1 for RSV that there wont be enough excess RSV which would then result in zero arbitrage opportunities.

All of these are false assumptions and a complete misunderstanding of the project and it's intentions to launch in countries with inflation. Here's how I addressed this portion of his post:

Except when there's high volatility in the market (again assuming that RSV will only be traded on some exchange), the reality is that RSV is targeting people that will be using an APP and have no control over what they bid for RSV at the time of purchase, they will buy it a higher rates because it beats losing money to a hyperinflated or highly inflated fiat currency but the same applies to exchanges during times of Bitcoin volatility.

now you're addressing a different part of the text?

>No, OP is ASSUMING that no one will pay more than $1 for RSV, he is then continuing to assume that BECAUSE no one would pay more than $1 for RSV that there wont be enough excess RSV which would then result in zero arbitrage opportunities.

but that argument wasn't made? OP said that people wont buy above the peg because they have an option to mint it for less $ instead of paying the higher price

i think you are confused

excess RSV comes from either transaction fees or collateral appreciation, not from RSV trading dynamics

if there are no excess RSV tokens, you can't arbitrage RSV with RSR if RSV is above the peg

this is pretty clear

What do you mean that argument wasn't made?

>Why would anyone buy RSV above $1? Rational/educated market participants who move large quantities of capital WONT, because if they wanted to buy/use RSV they could instead just mint it for $1 worth of collateral tokens instead of buying from the market for a PREMIUM price.

"So if RSV ends up with a high velocity of money (it is transacted with a lot) then we would expect the transaction fee to be the bigger source of demand. If the market cap is high but the velocity is low, yield on collateral will be more important. My guess is both will matter but the transaction fee will be more important in the medium term. This is based on our understanding that users in emerging markets will need to spend their RSV holdings frequently, rather than save them for the long term. Not a guarantee of course. Just our current hypothesis."

this part is talking about how excess RSV gets created, not why RSV would trade above the peg on the markets.

Read part 3) again from OP image

Yeah, I've read it several times now. The assumption that "arbitrage with RSR would still ONLY be possible if RSV trades above $1 and ONLY for the quantity of RSV that is being sold above $1" is wrong. You don't need RSV to trade above $1 in order to successfully arbitrage using RSR. All you're doing with your RSR is getting access to the excess RSV, it doesn't matter what RSV is trading for after you've acquired it. You can get .01 x 100 times and get to $1 RSV using your RSR over an extended period before you decide what you want to do with that 1 RSV. It's not an "all or nothing" situation.

>The assumption that "arbitrage with RSR would still ONLY be possible if RSV trades above $1 and ONLY for the quantity of RSV that is being sold above $1" is wrong

again, from the medium article:

>**When** RSV is trading above $1.00 on exchanges, any excess RSV tokens in this pool can be purchased from the Reserve smart contract by RSR holders exclusively for $1.00 worth of RSR. Once the purchase is made, RSR tokens are burned.

imo it says pretty clearly that RSV needs to trade above $1 for RSR users to be able to purchase the excess RSV

>any excess RSV tokens in this pool

I don't get it

you said RSV doesn't have you trade above $1 on the markets for RSR holders to buy the excess RSV tokens
but the article says only when RSV trades above $1 on the market, RSR holders can buy the excess tokens

which one is it?

The benefit of RSR is that when the price of RSV is above $1 you can still buy it at $1 and sell for the difference. This doesn't mean that you will only have access to the excess RSV during a time when RSV is trading above $1. If RSV is trading exactly at $1 you can still buy any excess RSV with your RSR for the benefit of burning more RSR. If RSV drops below $1 you can just arbitrage it the normal way without needing RSR to purchase it.

>imo it says pretty clearly that RSV needs to trade above $1 for RSR users to be able to purchase the excess RSV

This is wrong. RSV doesn't NEED to trade above $1 for RSR users to be able to purchase the excess RSV.

but when you do an arbitrage loop when RSV isn't trading above $1 you are not making any profit so it doesn't make sense to use RSR for excess RSR when it isn't trading above $1

It does make sense, because you can burn your RSR. It wouldn't make sense to pay $1 if it's trading BELOW.

so even when RSV is not trading above $1, people will still keep using up the excess RSV accumulated in the smart contract?

wouldn't that make it impossible to make profit with RSR to RSV arbitrage when people keep arbitraging for 0 profit? there will not be any excess RSV left for people who want to arbitrage when RSV is finally trading above $1 peg

gotta admire this reverse shill thread
unfortunately for you, I don't buy shitcoins to begin with
heh

It's not an all or nothing proposition. If you know you're buying up the excess RSV at $1 then you know that whenever it goes above $1 you will make a profit. If you're an RSR holder you can also make a profit based on the value of RSR going up as you burn more of it.

nobody cares faggot

so the next question related to that is, why would RSV trade above $1 in large volumes on the market if these market participants can just instead buy $1 worth of collateral and trade it for 1 RSV.

OP's logic makes complete sense that the revenue you can make from RSR-RSV arbitrage is directly derived from the amount of above the peg RSV that is being bought from the market, but I can't see why people would buy large amounts of RSV above the peg if they don't have to

just think from the game theory sense: why would a lot of people make the financially worse choice given the choice they have the alternative to make a financially better choice

Already answered.

>Why would anyone buy RSV above $1? Rational/educated market participants who move large quantities of capital WONT

Have you ever seen Tether during Bitcoin volatility? People pay a "PREMIUM" for stablecoins all the time because it beats losing thousands of dollars when BTC starts to dump

Are you purposely ignoring my responses here?

...

but it's not comparable since there's no alternative to buy Tether for cheaper than the market price

in RSV's case there's an alternative

didnt read - not selling

but heres the infamous satsgang pump and dump gorup sirs u must listen sell now and buy CurryToken sirs

Attached: satsgang.png (2684x1777, 1.76M)

In other words, there wont be time to react and wait for your RSV purchase to get verified while BTC dumps for example. Also, if you're in a 3rd world country and your currency is dipping in value daily you're not worried about paying a small fee or buying at .02 cents more if it means that you can save your purchasing power.

Read

There wont always be time or enough incentive to methodically purchase newly minted RSV.

Also, if you're trying to purchase RSV at $1 and it's trading above $1 you need to use RSR to get exclusive rights to purchase it below the value that it's trading for. This would further incentivize people to become RSR holders.

I get it that it's not a big deal overall, but the logic doesn't work for me when there's an easy way to not pay the premium at market price

the Tether comparison doesn't work, because you can't mint it yourself for whatever collateral

Yes, the easy way is to become an RSR holder.

WTF you guys arguing here. just spend 200$ to get 100k RSR and forget it. no big deal.

do you agree that the only way to generate revenue with RSR-RSV arbitrage is having a lot of market participants make financially bad decisions (buying RSV at premium - above $1 peg when they don't have to) and for that to be possible there would have to be excess RSV tokens available, meaning that the protocol would've had to previously collected transaction fees + the collateral had of appreciated

Tell me, is it a financially bad decision to buy RSV at 1.02 to avoid a BTC dump of over $1k?

im not here for pocket change faggot.

it's not a bad decision overall, but it's worse than buying RSV at $1 for collateral assets just by making ~10 more clicks. It's not complicated to mint RSV at all and it doesn't take a lot of time.

Your example is pretty specific though, if RSV only goes above the 1$ peg in unexpected and relatively rare circumstances like a massive dump then there won't be much opportunity to arbitrage.
Also, why does the arbitrage only work one way? Unless I'm mistaken, can't you buy RSV for

RSV / RSR arbitrage would be profitable if RSR holders were able to sell RSV for 1$ to the vault when RSV is 1$ but in reverse. I don't think such a mechanism is in place, which is a shame

we have to differentiate between 2 different types of arbitrage mechanisms
1) RSV to collateral arbitrage
2) RSV to RSR arbitrage

1) you can do whenever RSV is off-peg (both under and above)
2) is profitable when RSV trades above the peg and an excess pool of RSV tokens is available

we're only talking about 2) right now
you're talking about 1) in case RSV trades below the peg

you're right, but I am not sure if that's possible

from what I've read from the medium articles and seen from the RSV burn video, that's not possible. But the other guy here says it is. So I don't know.