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19946866 No.19946866 [Reply] [Original]

How will RSR arbitration work? I'm sub 70 IQ

>> No.19946877
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19946877

>>19946866

>> No.19946888
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19946888

>>19946877

>> No.19946924
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19946924

>>19946866
>>19946877
>>19946888
This thread is blessed to high heaven.

>> No.19947010

>>19946866
>>19946877
>>19946888
Wasn't going to respond but clearly kek has blessed RSR and wants anons to understand it, so here you go: https://reserve.org/blog/why-arbitrageurs-should-hodl#:~:text=Here%20is%20a%20brief%20overview,made%2C%20RSR%20tokens%20are%20burned.

Say RSV is trading at $1.02 (above the peg). You take $1 worth of RSR, burn them, and receive 1 RSV in return. Then you sell the RSV for $1.02, buy back $1 worth of RSR and keep 2% profit. So you can extract profits from your RSR, while still holding the same amount.
Alternatively, you can do a pro rata burn as described above. This is what Peter Thiel, Coinbase, etc. will do - they are literally never selling, and neither am I.

>> No.19947184

>>19947010
So the reason for RSR price to go up is through increased usage (network effect)?

>> No.19947307

>>19947184
Honestly it's mostly speculative at the moment. Usage is growing, team is delivering on milestones, etc, but people are buying today because they know they won't be able to afford a make it stack if they wait too long. The arb profit potential is too good to miss out on.