well that's disappointing. I should stop caring about it simply because it's stuffing my pockets? Nah sorry not one of those people.
You are viewing a single comment's thread from:
well that's disappointing. I should stop caring about it simply because it's stuffing my pockets? Nah sorry not one of those people.
It's beneficial to Hive and HBD. What exactly is the problem?
Keep hearing people say that, but nobody can say exactly what benefits it has.
Tired of the thousand dollar spam posts on trending!
I literally stated the benefits in the prior post. It is currently virtually eliminating Hive inflation. Hive inflation has gone from way above the intended schedule, to very low inflation thanks mainly to hbdstabilizer.
It is also stabilizing the price of HBD, discouraging people from buying it speculatively, and channeling that excess price more quickly into the price of Hive so that HBD supply adjusts at a faster pace to the appropriate amount to keep it near $1.
In theory Steem has the same mechanism, where an higher price of SBD increases the utilitarian value of Steem Power, driving up Steem price to where SBD supply balances out, but in practice it is too slow a mechanism which is why we have seen SBD an order of magnitude higher than the pegged values, and it is currently completely failing to stay close to $1. Using the DAO fund dramatically speeds up this process and ensures that all stakeholders receive the benefits via increased Hive price.
We haven't managed to create a perfect stablecoin yet, but it's so far been better than any other with decentralized collateral (as opposed to centralized collateral such as TetherUSD, USDcoin etc). We can keep making it better instead of throwing our hands in the air and giving up the huge amount of financial value that HBD brings to Hive ecosystem.
Are you aware that you can block and ignore posts from accounts you don't like?
It doesn't seem that way at present, and I wouldn't be surprised to see this uptrend continue.
Do you think the speculators are aware of hbdstabilizer?
And, is it the case that the higher HBD goes, the more HIVE is bought, and in the long run this project will have a positive influence on HIVE price?
The impact of @hbdstabilizer is not within a vacuum. We can only compare to 1) previous Steem bull runs and 2) the current Steem bull run, which is a near like for like project technically if not socially.
HBD is tracking much closer to $1 than during 2017 crypto bull market and compared to current Steem bull run. It's also a simple function of basic economic principles that it should work this way.
I think the speculators are mostly clueless, and @hbdstabilizer exploits their inefficient pricing to the benefit of Hive stakeholders and speculators. All we can do for those HBD speculators is to inform as many people as we can about HBD and how it works, so that they can make more informed decisions. I actually think the stabilizer being on the front page every day helps raise awareness to the benefit of preventing HBD speculators from making bad decisions.
Yes.
Thanks.
I hope that most of the Hive community is aware of the project. Not that I would normally be speculating on HBD, but hbdstabilizer is another reason not to.
However, I will be holding what I collect due to what I saw in previous Steem bull runs where SBD reached multiples of STEEM before STEEM took off.
While HBD is still not a true stablecoin, it is doing far better than SBD historically during bull markets.
It looks that way on the charts, but the real test is coming in the next 3/6 months I think. HIVE has fallen in price throughout that stable looking 75c HBD and now it's starting to move, so is HBD.
That's 75p, my local setting on Coingecko is GBP 😅
I think it will be necessary and beneficial for either the @hbdstabilizer to convert HBD when prices are below eg. $0.95 or to be directly funded with Hive from @hive.fund.
That would create Hive inflation from HBD - however as it will sequester the profits back to @hive.fund, the overall inflation should be much lower than it would be if only private individuals were converting Hive and releasing the full amounts on the market (which can in principle have a compounding effect on conversion-based inflation).
Also - Steem was mostly pretty flat during the time of the SBD boom in 2017. It's my view that eventually excess SBD value was channeled into Steem by a slow mechanism, and that's what caused Steem to have a boom significantly after the rest of the crypto space.
A full causal analysis is very difficult, but we are in a unique position where Steem vs Hive is nearly a like for like, A/B test. Perhaps with a few months more time we will have the kind of data that we can say with confidence what kind of causal link there is if any.
This might not work, but how about this as an idea and I don't know if it helps stabilize HBD.
Use the savings wallet as a staking point like a defi pool, but it attracts Hive as an automatic percentage of curation as if it is active (for example 50%). This would give it a return of ~10% A year in Hive, less than curation, but far better than a bank. Can this pool of Hive be then used to further stabilize HBD?
I think this would may also create some market scarcity and push the price of Hive up, as it gives a bit more passive use case to holding Hive on chain, rather than on exchange.
NB: I have no idea how to stabilize a token :D
I definitely agree with providing more rewards for locking up capital (including HBD) in Hive. There was already intended to be a 10% interest for merely holding HBD, perhaps a relatively simple change would be to have two interest rates, a lower one for unlocked HBD and a higher one for locked HBD.
I think it might give a very good use case to the savings wallets and incentive to hold tokens. Bringing back for example 100M tokens from the exchanges for a 10% return would still have additional benefit for active stake, as it would create a driving price and make earning on chain more lucrative. Eventually, some kind of equilibrium would be found I assume.
The model that a number of stakeholders have discussed is to just have the interest rate for liquid HBD be zero and if you lock it up in savings (effectively 3 day staking), you get the specified interest rate (currently 3%, but could be higher, and could be higher still if it weren't paid for all HBD, only locked HBD). I think that is sufficient for a next step without needing the complexity of multiple interest rates. It serves the purpose of giving a reward for buying and holding, and saves some cost paying interest on liquid HBD for people not intending to hold for a significant period (or clueless) who don't care about that interest.
One could also imagine something more complex, with multiple staking periods and interest rates and such, but let's not go overboard dealing with an asset circulating 6 million tokens currently. Small steps, maybe bigger ones later.
Block and ignore posts?
On my screen it's called "mute", and only works on members, not posts.
It depends on what client application you are using. Muting hbd.funder should suffice if you don't want to see it on trending page.
Posted via D.Buzz
I agree, it's short term thinking, and it's the wrong sort of demand for a token.