3 ms·
Well that mechanism for arbtrage usually occurs through settlement. ie at contract settlement, you trade one for the other.
by smabie 5y ago
Well that mechanism for arbtrage usually occurs through settlement. ie at contract settlement, you trade one for the other.
- minitoar 5y agoRight, in lieu of that these schemes use a variety of different mechanisms. One way is you can mint the derived asset at a price oracle by staking other tokens. If the synthetic spot price is too high, you can sell your newly minted asset for more than you staked. If it’s too low, you can mint an inverse asset and sell that for more than you staked.