[graeme]

It’s not just 0.1% off the peg. It’s 0.1% off and facing large redemptions.

That makes the peg loss seem significant

[grapehut]

The large redemptions are what is causing them to be 0.1% off the peg...

[thebean11]

Or is being 0.1% below peg causing large redemptions? People buying USDT at a discount and redeeming at face value.

[kasey_junk]

Thats why breaking the peg is so bad. Its a visious cycle so both are correct.

[thebean11]

No it's not..people buying in order to redeem brings the price closer to the peg, not further away.

[graeme]

Definitely. But a lot of people have looked at the small depeg and said “it’s not big, and they’ve depegged in the past. What’s the issue?”

It’s seeing the redemptions that show it is significant