Dust on Crust

March 09, 2023

We are entering what is called the “dust on crust” segment of the ski season. If Bitcoin is worth $0.5, then the Bitcoin value of the perpetual swap is 2 BTC, $1 / $0.5. This Bitcoin + Bitcoin / USD Inverse Perpetual Swap relationship is so fundamental and important that I must go through the maths every time I talk about it. NUSD would trade at an explicit (e.g., NUSD / USD) or implicit (e.g., BTC / NUSD that is at a premium or discount to BTC / USD) value vs. a fiat USD. As you can see, creating and redeeming moves NUSD, BTC, and swaps between the AP, the DAO, and their respective accounts on the member exchanges.

The source of this news is from BitMEX