U-price inversion has lasted for a while, the USD to RMB exchange rate is 7.03, but USDT is at 6.85, a 2.5% discount.

From the supply and demand perspective: In the past, everyone was very FOMO, after getting paid they rushed into the crypto market, and the U-price was higher than the exchange rate; recently, the market has been dull, more people are withdrawing funds, and the U-price has fallen.

From a regulatory perspective: Recently, China has strengthened C2C regulation, making it easier to freeze accounts, and the risk is reflected in the discount of U.

But isn't USDT pegged to USD? Has anyone been able to arbitrage through U - CNY - USD?