We all know that UST is resilient in the medium term due to LUNA being the buyer of last resort, but the last week has shown us that there isn’t enough liquidity on the exchanges to handle the volume leaving the system in very short time frames. Professional arbitragers are capital constrained, and many are risk averse. What could individual retail terrans do to aid in the arbitrage process?
What if we lobbied Kucoin to enable spot market grid trading for UST/USDT and UST/USDC? Grid trading allows the investor to set their price range, and profit from fluctuations within the range. Profiting from volatility and mean reversion. We all have faith that UST can restore peg so grid trading on UST is a great way for us to profit from our convictions in the ecosystem. And in the process we will be helping reduce the volatility of UST and make it so that LUNA needs to bear less of the burden. People could even set parameters tighter than the on-chain swap and make us hug even closer.The only issue is that Kucoin doesn’t have it enabled for these pairs. Does anyone have an ear at Kucoin to see if they can enable this for us?!?