5min chapter

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This Is How the Terra Stablecoin Actually Imploded

Odd Lots

CHAPTER

How Does the Arbitrage Mechanism Between Luna and Terra Work?

A, can you explain exactly how the arbitrage mechanism between luna and terra or us? T actually works? Like, walk us through what is happening as the prices of either of these things move. A, yes. Ill first sort of just describe the simple model, and then i'll add some cavia on some of the intricacies there. Nso i think we should be able to describe the phenomena that we've seen in the past few days, butbefore we get into kind of like what happened over the last few days a.

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