> > The ability to redeem LUSD for ETH at face value (i.e. 1 LUSD for $1 of ETH) [...] create a price floor
That is not entirely true though; it costs money to redeem LUSD for ETH. Earlier today it was 2%, so not particularly cheap. That would put the floor at 0.98 at least momentarily.
That is not entirely true though; it costs money to redeem LUSD for ETH. Earlier today it was 2%, so not particularly cheap. That would put the floor at 0.98 at least momentarily.