“It creates demand for UST by arbitrageurs who can buy UST at, say, $0.97 and convert it for BTC at $0.98,” said Jordi Alexander, chief investment officer of Selini Capital. “This should create a more hard floor at $0.98 and prevent a cataclysmic redemption flow into LUNA because at that point, say, UST was going to $0.97, people would arbitrage the price back up.”
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