windcity

#ema Think about it, if there are 1 million ETHs to be exchanged for USDE, do you need to open a short position of 1 million ETH? Another ETH can be exchanged for 3,500 USEs. Then there are 3.5 billion.
Then it is impossible to open all the 1 million short positions at once, right? What if there is an extreme pull-up? Increase the pledge? If there is a bear market, ETH falls to 1,500. This requires a funding fee. Then a large number of people in these 35Es want to exchange back to ETH. You have to give it back. . You also have to close the position, right? If the liquidity problem is solved? Then there must be a lot more USDE, right? Can the profit of the short position be supported? Big guys, please tell me.

#ema There are so many people shorting, the funding fee is super high.