A simple understanding question: lets say i swap a huge amount

of dfi into dusd, will this bring the price up from dusd?

Depends on the app you use to swap, what app do you work with?

which app do you prefer for this action? Is there a possibility to connect my defichain lightwallet to it?

I don't think that will be possible.

what do you mean? my question is, what will happen if i swap (dex) a huge amount dfi into dusd? Price of dusd going up?

🧐 are you sure you know defichain well?

Yeah I do, I have tried connecting my defichain lightwallet to some trading app, which doesn't work, I tried contacting someone, But I haven't gotten any positive reply yet

Yes, you're right. DUSD price going up when you buy.

😂😂😂

It's not a typical smart contract type of app. Are you trying to connect it via ocean interface api?

Thx so there are just 3 possibilities to rise the dusd price 1. dusd swap burn fee 2. new money flowing in 3. close vault with dusd (will it be burnt? or was it vise versa with dfi?)

To answer the question, if you swap a huge amount of DFI to DUSD you might end up just causing DFI to decrease, not the DUSD discount.

Would love to hear more on this, Spencer. Why do you think so? Guess the original question was more a theoretical one. My understanding: Token you buy will rise in price, token you sell will drop. Ever so slightly only of course. But that are the mechanics of any pool - or not?

If you swap a huge amount of DFI then yes the price of DFI will drop in comparison to DUSD. But how do you know that people will keep the new discount tightly? What if you just end up making the whole DFI price drop and then DUSD has the same discount?

You would also have to sell a lot of DFI. At the current metrics and price of 2.752613 if you sell 100,000 DFI you will only lower the price to about 2.742364 (1¢)

Someone please correct my thinking if it is faulty, but I don't see how selling DFI for DUSD could EVER impact that price of DFI. What would happen is that eventually the discount on DUSD would go away, and once it got to a 1% premium then people would start arbitraging it by minting DUSD and burning DFI. So basically, when we're at the $1.01 value of DUSD, all DFI spent on DUSD is effectively burnt, which actually helps the real price of DFI.

He want's to sync your Metamask. 😅

You are selling specifically in one DUSD-DFI pool but the burning of DFI will affect the price everywhere in all of the pools.

Thank you. In my original message I should have said I don't understand how selling DFI for DUSD can make the overall DFI price go down.

In any exchange, selling one token makes it go down because: A. You fill up buy orders or B. You reduce the supply of the other token which acts as liquidity and increase the supply of the token you sold therefore causing a drop in sold assets value.

But there's no closed arbitrage loop with the DFI-DUSD pool. Its a closed ecosystem. Selling DFI for DUSD makes it go down vs DUSD only, but that can't be arbitraged out to the CEX. And the price for DUSD has a ceiling of $1.01, after which continued selling of DFI for DUSD causes DFI to get burnt which decreases the supply and therefore actually helps the price of DFI everywhere. So again, how could selling DFI for DUSD impact the DFI price elsewhere in a negative fasion?

If DFI is sold then it's price would be different from other exchanges and people would likely use DUSD to buy the discounted DFI and resell on other exchanges. Also, a burn is useless and doesn't affect market value unless used for fomo/hype or it's a buyback and burn

This isn't possible because there are no exchanges where DUSD can be bought besides the Defichian DEX, hence no arbitrage loop.

Yeah but DUSD can be traded with other assets on Defichain Dex no?

DUSD may be traded with dTokens, but they themselves are not traded on any exchange besides the Defichain DEX. The only way into or out of the dToken ecosystem is through the DFI-DUSD pool. So no closed arbitrage loop means that selling DFI for DUSD cannot negatively impact DFI price on any other exchanges.