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# System prepended metadata

title: "Understanding oneVBTC ICHI Arbitrage & Demand \U0001F4C8"

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# Understanding oneVBTC ICHI Arbitrage & Demand 📈

### Arbitrage
1. If vBTC Price > Bitcoin Price, create vBTC and sell it
2. If oneVBTC < $1, buy oneVBTC and redeem for USDC
3. If oneVBTC > $1, mint oneVBTC (with USDC + vBTC) and sell it


### Minting and Redeeming oneVBTC:
![](https://i.imgur.com/HGj3lc1.png)

oneVBTC, like the other ichi.org stablecoins, can always be minted and redeemed for exactly $1 of value using the ICHI minter.  When you mint, you pay $1 of value in (USDC + vBTC).  When you redeem, you get back $1 of USDC, less a 0.45% redemption fee.

However, oneVBTC is also traded on exchanges, starting with Sushiswap.  The price on these exchanges may be higher or lower than $1.  You can make an arbitrage profit any time you find that you can swap enough at a price that is far enough from $1 to pay your trading and minting/redeeming expenses.


### Securing the vBTC Peg

How will this help secure the peg?

People have to buy vBTC to mint oneBTC and to deposit to the oneBTC-vBTC pool.  This purchase pressure will increase the price of vBTC.

This creates buying pressure for vBTC that raises it to the peg, which is when people will use the bridge to burn new vBTC.

Why will there be demand for the stable coin?

Demand will come from double yields ($SUSHI & $ICHI) and the fact that it's a stablecoin.
![](https://i.imgur.com/lqW3JNr.png)
Making arbitrage Profitable.

As long as you have a system that is dynamically  balancing between the dollar and bitcoins, it is worth doing every day.


Authors: 

Ataxia - Nerd Lead Developer
Masanobu Fukuoka - Ichi Lead Developer