Convert to HBD. This contract is similar to above, but in reverse and with a 5% fee. If a user executes this contract with 100 Hive, after 3.5 days they will get 95 Hive worth of Hive Dollars. The exchange rate again is determined by the price feed in the same way as above.
Not quite right. The HBD is delivered immediately. The converter needs to post HIVE in excess of the current value, and after 3.5 days the excess (based on future feed exchange rate) is returned.
I personally preferred it the way you described it but it ended up being implemented the other way because of a preference for faster supply response to the potential of big price pumps.
Thanks, would this alteration be accurate?
How much is the excess amount?
The required collateral is twice the HBD amount divided by the lowest hourly feed price in the past 3.5 days before the conversion. This amount of HIVE is immediately deducted. At the end of the 3.5 days, the conversion cost is the HBD amount divided by the median feed price over the past 3.5 days. The difference between the required collateral amount and the conversion cost is returned.
EDIT: 5% fee is added
The 5% fee is still built into the conversion cost or is that no longer a thing?
Ah yes, I forgot the 5% fee. That is added.