This is, of course, great news. Hopefully it catapults HIVE into the limelight a little bit. That said, my question is this: What happens if and when there is $100k HBD and $100k USDC in the LP and someone comes in and scoops up the liquidity? Say someone comes in and buys $100k HBD and doesn't put it back in the pool. Now what?
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You wouldn't want to buy $100K from a pool with only $100K on each side, this would result in enormous slippage. You would have to buy smaller chunks and hope the pool gets arbed back to 1-1 (which would add more HBD in this case).
To be able to buy $100K instantly with reasonable slippage you would need a much bigger pool.
Exactly. Though as we have seen some people are oblivious to slippage.
If someone did do it, then we'll see arbitrage bots step in and take care of the pegs to get them back to their correct level
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Then HBD moons in price. The thing is, then someone (likely a bot) will arbitrage HBD back down to its peg on the pHBD-USDC LP. This is important for the mechanics of HBD.
The need for massive liquidity on HBD has arrived and PolyCUB is at the center of it
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