Excellent analysis and a very well articulated essay.
I have two clarifying questions –
“The pool is going to push into the direction of the price oracle, which thinks a $cvxFXS at present is worth about 83% of a $FXS.”
#1 – Since cvxFXS and FXS should eventually become pegged/converge to 1:1, does that mean that cvxFXS is undervalued right now?
“You can deposit your $FXS into the pool and get a 20% bonus at the moment.”
#2 – Does it make more sense to deposit $FXS into the LP pool OR is it better to take advantage of the arb opportunity and convert the $FXS into 1.2 $cvxFXS… and then deposit the $cvxFXS into the LP pool?
Excellent analysis and a very well articulated essay.
I have two clarifying questions –
“The pool is going to push into the direction of the price oracle, which thinks a $cvxFXS at present is worth about 83% of a $FXS.”
#1 – Since cvxFXS and FXS should eventually become pegged/converge to 1:1, does that mean that cvxFXS is undervalued right now?
“You can deposit your $FXS into the pool and get a 20% bonus at the moment.”
#2 – Does it make more sense to deposit $FXS into the LP pool OR is it better to take advantage of the arb opportunity and convert the $FXS into 1.2 $cvxFXS… and then deposit the $cvxFXS into the LP pool?