[Erebor Cancels Free Stablecoin Redemption Service, Arbitrage Exploited by Wintermute and Others] Odaily Planet Daily News: Erebor Bank, a crypto-friendly bank founded by Palmer Luckey, launched a free redemption service for Circle and Tether stablecoins earlier this year to attract crypto clients. Professional trading institutions like Wintermute exploited arbitrage opportunities within the service, causing losses for the bank. The service was discontinued after being in operation for several months. The actual trading price of stablecoins does not always remain at $1, as redemption fees, liquidity differences, and de-pegging risks can all lead to price deviations.