here you go
Did anyone respond to this FUD?
Christian Mitchell
Lucas Clark
but you're saying wrong/false to things that are not wrong/false
Jayden Sanchez
such as?
David Cox
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
Nathaniel Sullivan
the dev said he is going to get nevin to take a look
Alexander Nguyen
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.
Gavin Stewart
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
Andrew Rogers
You have to continue reading
James Bailey
I went point by point and responded to each point being made.
Lincoln Scott
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