Redemptions are the core of @ResupplyFi's flywheel. Here's a simplified version 👇
When $reUSD is sold off, the peg is likely to fall. If it falls below approximately 0.99, arbitrageurs will buy $reUSD and exchange it for $crvUSD—pushing the peg back to its normal level while profiting.
Anyone can redeem, but in practice, it's handled by bots. They use flash loans and other tricks to instantly complete the arbitrage within a single block.