Will the 30% DEX stability fee get removed when the

The AMM pools require arbirage traders to come in to swap DUSD to USDC and vice versa to maintain unity. However since there is a 30% fee charged for this trade wouldnt that discourage arbitrage trading? It would only be profitable if the deviation is > stability fee

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21.07.2022

DanieL BaptistA

Dan Vo
The AMM pools require arbirage traders to come in ...

Ahh ok you are mentioning the 50-50 ratio. Yes, basically with a stabilization fee on DUSD, it may discourage arbitrageurs to go on and make the trades on a first stage, since they will need to pass DUSD to crypto to cashout. But if they want to get free DUSD to tokenized stocks, might be a good way to arbitrage it. We'll need to see gow this will interact with the newly soon to be introduced remaining measures, they will all need to work together to increase the burn of algo DUSD and reduce the stabilization fee to less painfull levels

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21.07.2022

DanieL BaptistA · Accepted Answer

DanieL BaptistA

Hi! No, only when the algo DUSD falls to healthy levels, at around 50% of the total supply. But, the fee is actually starting to fall, cumulative, already fallen 0,5%. It looks little, but the effect will be exponential, so when the snowball starts, we will be seeing good results in the reduction until it disapears :)

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21.07.2022

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Will the 30% DEX stability fee get removed when the

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