A thin exchange book can make an index token look cheaper without making its underlying basket cheaper.
On November 7, Reserve said it and its market-making partners were pausing liquidity provision for $LCAP and $CMC20 on #MEXC . It said liquidity elsewhere, including onchain, was unaffected.
These index tokens can be redeemed onchain for their underlying assets. That's a different exit from selling into exchange bids. An exchange balance must first be withdrawable; the contract cannot redeem your exchange IOU.
My read: compare the executable quote for your size with basket value, after withdrawal costs, gas and swap slippage. A screen-price discount alone isn't an arbitrage.
On November 7, Reserve said it and its market-making partners were pausing liquidity provision for $LCAP and $CMC20 on #MEXC . It said liquidity elsewhere, including onchain, was unaffected.
These index tokens can be redeemed onchain for their underlying assets. That's a different exit from selling into exchange bids. An exchange balance must first be withdrawable; the contract cannot redeem your exchange IOU.
My read: compare the executable quote for your size with basket value, after withdrawal costs, gas and swap slippage. A screen-price discount alone isn't an arbitrage.
