No - thats what I'm saying. They use a bot to buy/sell USDT to keep the price 1:1... And then they redeem anything purchased by the bot.
Effectively, they will redeem only for themselves.
Could be a neat way to do no KYC or ownership verification or dealing with messy bank transfers to dodgy people, etc. Hides the location and/or existance of funds from redeemers and those able to trace money movements too.
Or could be a way to hide a delicately balanced stack of cards...
I don’t find market making or liquidity providing to be controversial
it still requires capital from their reserves to do what you describe, purchasing USDT for $1 each
the redemption mechanism is an incentive on its own. when Tether is below $1 purchase it yourself (pushing up the price of Tether) and go to the redemption window and get $1 for it regardless.
Effectively, they will redeem only for themselves.
Could be a neat way to do no KYC or ownership verification or dealing with messy bank transfers to dodgy people, etc. Hides the location and/or existance of funds from redeemers and those able to trace money movements too.
Or could be a way to hide a delicately balanced stack of cards...