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> Now, you take that new token, exchange into new ETH You can only exchange it back into ETH after the lock period is over. Sure, you can buy ETH from someone
by glerk 4y ago
> Now, you take that new token, exchange into new ETH
You can only exchange it back into ETH after the lock period is over. Sure, you can buy ETH from someone else in exchange for this token, but you will pay a premium for that: obviously, people prefer ETH to some token that can be exchanged for ETH in the future and there is not an infinite supply of ETH available to be sold for this token.
So no, you can’t just increase your ETH ad infinitum. At each iteration of the loop, your amount of tokens will decrease until you have none left.
- MauranKilom 4y agoThat's just a different way to say you can leverage yourself close to infinity if you want. (How close depends on how much sETH trades to ETH on the dollar - if I understand the article correctly, it used to be pretty close.)
- glerk 4y agoYou can certainly leverage yourself, but not anywhere close to infinity. How much sETH trades to ETH depends on the supply and demand on each side. The more sETH tokens you bring to trade, the higher the price of ETH will be.