2min chapter

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Terra - Decentralized Stablecoins and The Power of Community with Do Kwon

Modern Finance

CHAPTER

How Do You Maintain Your Peg?

The protical basic acis the price maker efer terra, regardless of what its secondary market prices might be. If pera us d is chatting at one point one dollars, you have an incentive to buy up luna, swapit for a dollar's worth of par u st and they capture a ten % viritage profit by selling par s tem for the market. So how often is is that happening? How active are the folks doing arbitrage? Literally every day. There's tons of different traders that do this now. And the ditties have bots that are automated to come in and just maintain your peg for you. Yes, i think there're some retail traders

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