This proposal seeks reimbursement for 140 HBD of fees paid for the HBD stabilizer funding proposal (as well as this proposal)
The HBD stabilizer is run with no profit or compensation to me.
Proposal number is 192
Hivesigner link to approve reimbursement
Peakd proposal link for reimbursement
Ecency proposal link for reimbursement
100% beneficiary to @hbdstabilizer
What makes HBD so difficult to stabilize after all this effort? SBD was wild too, so this is a problem that hasn't been solved in 5+ years. I genuinely want to know the riddle here.
I think its actually quite stable at this point. Most of what you see now are small fluctuations due to limited liquidity and also some fake price fluctuations due to weird price reporting and suspicious (most likely fake) volume reporting by crypto exchanges.
The stabilizer has its own methods of calculating the price and what I see in the logs is mostly a percent or two of fluctuations and very short divergences of more than that when there are big market displacements (big Bitcoin crash, for example). The latter are often resolved within a few minutes.
There are pumps that take longer to resolve, but eventually that too will stop, because most who participate in them lose money.
It's certainly nothing like SBD. Even the pumps are vastly smaller: The recent pump was mostly at $1.20, while SBD pumped to $10 or so. The previous HBD pump (to $2-3) was before Hard Fork 25 in June that added collateralized conversions from HIVE to HBD. It's much harder (and costlier) to pump after that fork.
What if the US dollar flash crashed (which some say is very possible) how would that effect our HBD?
It would probably be overvalued at first and take a little while to decline. We'd destroy a lot of HIVE creating HBD to dump on to the market to push its value down to the new value of USD, which could be good for the price of HIVE (over and above that the price of HIVE would likely go up in USD terms just due to the USD flash crash itself).
If it seemed like USD had utterly failed as a currency, we'd probably switch the peg to something else such as a basket of commodities, after some time to debate what the new peg should be.
Ok, thanks for the explanation. This was my only concern before considering a larger position in HBD. Hopefully we could move fast enough to switch the peg if and when that crisis arrives.
Honestly if you don't have confidence in USD to survive your holding period, I wouldn't buy it. Right now it is intended to track USD. Yes that could change, but if you don't trust USD you shouldn't trust something that tracks USD either. The idea of switching peg would be to preserve utility going forward (hyperinflation makes a currency nearly useless), but you shouldn't infer from that a promise to protect HBD holders from taking a loss if USD collapsed.
Ok, thanks for your response. Maybe Hive is the better investment for my needs then.
Thanks for this. Additionally, what are the mechanics or triggers to adjust liquid payouts being made in HBD to Hive? I can't remember and am seeing the HBD/HIVE ratio get decimated on this recent pump here.
The HBD payouts switch to HIVE when the market cap ratio reaches 9% or 10%, I don't recall which. However, the increase in HIVE price reduces the ratio, now about 3%, so this isn't even close to happening, and HBD will continue to pay out.
HBD in @hive.fund doesn't count toward the ratio.
Is anything happening with @hbdstabilizer? It appears to only be transferring all funds back to the DHF at this time.
Published algorithm has been updated to use print rate to control both conversions and buying HBD, and the print rate will likely hit 100% soon due to the recent price rise and surge in conversions of HBD.
So full activity of the stabilizer should resume shortly.
The published algorithm won't buy if the print rate is <100. This is because the fair price to buy is unclear near the haircut. (In reality, a higher cutoff probably makes sense, but this was easy to implement.) I also manually disabled conversions for the same reason (and further, conversions are pointless if you aren't going to buy because once the HIVE is sent back to DHF it turns back into HBD and there is no useful change to the token supplies).
Thus it is just sending back the budget payouts, but will switch to using them when the price recovers (or when others convert enough HBD out of existence).
Nice post
@sunsetjesus @smooth can u pls take ur downvote back. Im sorry if i did anything wrong. My account reputation went from 45 to -4. Im just a new user pls take ur downvote back.please
@sunsetjesus @smooth i voted ur proposal. Please take us take ur downvote back from This Post's Commentim sorry.
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STOPTo support your work, I also upvoted your post!
Check out the last post from @hivebuzz:
May I ask, why is making a proposal so expensive?
to avoid spam?
Yes that's right.
It depends on the length of the proposal. This one goes for 180 days so the fee is higher. Short ones only cost 10 HBD. Also in most cases a proposal is some sort of compensation and the proposer can build the fee into the proposal. But in this case the entire amount of the payout is returned, which is unusual.
If this helps in stabilizing HBD then good luck!
Thank you @smooth and @sunsetjesus for taking back your downvote. I appreciate it alot.
Greetings @smooth
i bring to your notice about the brief challenges i am facing,i need to pay up my tuitions fee but am seriously in shades of emptiness,my all intension was to power down but my hp isnt enough to settle the current issues i am facing sincerely speaking your assistance would go a long way.
I made a post with details on that issue heres the links
https://hive.blog/hive-168869/@tosmart/a-cry-for-assistance-and-a-need-of-help-to-clear-up-my-tuition-fee-which-has-been-pending-all-help-won-t-be-taken-for-granted
bilgilendirme için teşekkürler.
Amazing proposal I must confess.