After yesterday’s fee update, our DeFi collaborators surfaced a better structure for USDAI liquidity. Instead of forcing a tradeoff between compliant redemptions and deep onchain liquidity, the system can support both through whitelisted mint/redeem rails paired with dedicated PYUSD liquidity. As a result, effective redemption costs are expected to move from 10 bps toward ~1-2 bps. twitter.com/USDai_Official/sta...
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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