HBD stabilizer continuation and increased funding

in #hbd9 months ago (edited)

This proposal adds an additional 3200 HBD/hour of funding to the HBD stabilizer. The HBD stabilizer is described in several past posts in my blog.

Previously there were 100, 200, 300, 400, 800 and 1600 per hour proposals. The 100 and 200 per hour proposals were allowed to expire, since they seemed pointless at the current available budget level of over 2000 per hour, leaving the 400, 800, and 1600 proposals. The 400 proposal expires soon, and the current budget is just under 2400 per hour, so the remaining 800 and 1600 proposals are likely to soon become insufficient.

The new funding cap will be 5600 per hour, more than enough for the likely available budget in upcoming months, and possibly still enough even when the 800 and/or 1600 proposals expire (this can be reevaluated when it happens).

This proposal will allow the HBD stabilizer to continue its work, and to expand available budget for stabilization as the daily DHF budget continues to grow. In practice stakeholders have tended to use these stabilizer proposals as a substitute "return" proposal which uses the excess budget left over after other proposals are funded to stabilize the HBD market and channel excess demand for HBD, with the proceeds then returned to DHF rather than the immediate automatic "return" proposal, which does nothing else. In some cases stakeholders may also view the stabilizer funding as better use than some of the other less-compelling proposals.

A recent estimate from @dalz was that the HBD stabilizer had generated a profit of approximately $1.5 million, adding funding for the DHF, helping to stabilize HBD, and, on net, removing many millions of HIVE from circulation.

For all of the previous proposals, I have paid the fees myself, and have accepted no compensation for maintaining the bot implement or deployment. In this case I will continue to maintain the bot and deployment with no compensation, but will be submitting another proposal to request reimbursement for the proposal fee.

Proposal number is 191
Fee reimbursement proposal number is 192

Hivesigner link to approve
Peakd proposal link
Ecency proposal link

Hivesigner link to approve reimbursement
Peakd proposal link for reimbursement
Ecency proposal link for reimbursement

100% beneficiary to @hbdstabilizer

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Hi smooth...again.

Pardon my noob questions I’m just trying to properly get this hbd facts more in-depth.

With everything I’ve read, you run this bot. Can it be made autonomous at any point? Can it keep running without your input? If it can’t, shouldn’t it? If it can, awesome

You would need smart contracts (then yes a proposal to do this could be fully automated), maybe we will have that, maybe not. There could also be multiple proposals run by different people doing the same thing, so it doesn't have to be me or anyone as a single point of failure. In theory if the market is mature enough you might not need the bot at all because people would do it on their own. If you can buy HBD for 95c you can make a profit. This then drives up the price of HBD. We just don't have a lot of attention to this chain nor a lot of capital involved with trading it. The stabilizer bot is serving to help bootstrap it, I think, but would stop being profitable and could go away at some point we enough other trading activity.

Thanks for this explanation

I vote for it.

Best solution besides a pool community can invest in to stabilize it :)

No es mucho lo que puedo dar pero aquí tienen mi voto.

Voting both

not much, but voted!

Wasn't there some advantage to having a range of stabalizer pay outs?

This one is a bit of a monster and if it gets too high up the list, it will absorb the whole DHF.

I guess we have to rely on a few whales to monitor and hopefully keep it at or around the level of the return proposal.

Is there any thought to making this a core function of Hive and how the DHF operates to just have all unspent daily funds diverted to this script?

Yes there will still be a range. 800-5600. The smaller ones seem increasingly useless.

I would suggest that stakeholders not vote the large ones up too high on the list, unless the intent is to cut the others off. The 1600 one was left close to the bottom.

HBD stabilizer had generated a profit of approximately $1.5 million, adding funding for the DHF, helping to stabilize HBD, and, on net, removing many millions of HIVE from circulation.

So in effect, it's also helping hive price ? Creating less supply and more demand situation ?

No one can guarantee what a price will do but historically yes, the stabilizer has been a source of a lot of net demand and reduced supply for HIVE.

Right now the trend is actually moving a bit down because a suddent sell of a lot of hive on the market, but it will be stable soon, im keeping a eye on the markets rn. Data can only be look and analized at a later date, in a few weeks after the burn it will be show if it helped or not :)

Probably most of the short term move down is the wider global markets pushing everything down rather than anything specific to Hive but who knows.

Hive already doged the market down past week, is not as influenciable right now thanks to some heavy holders XD

You're right about the burn aspect. I removed that sentence as it was confusing.

When HBD is under one dollar, the funds recieved from the dhf in form of hbd are first converted to hive and then used to buy hbd on the internal market to support the one dollar peg ... basicly hive is sold for hbd

HBD seems to be staying around $1 so I guess it is working even as $HIVE took a dip. I hope this can be good for Hive in general.

Always supports this proposal!
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Is this a sign that more HBD will be produced in every hour?

Not really. The DHF budget is limited, and so far all of it has been used. The idea of the large proposal is to continue to make use of whatever is available.

Voted, it's a no-brainer.

Uhmm, I guess I will have to admit that I have no idea what this proposal means and how it works.

USD/HIVEUSD/HBDBTC/HIVEBTC/HBD
ionomy.com$1.25000.000013720.00002001
bittrex.com$0.6300$0.95460.000014270.00002181
binance.com$0.62660.00001433
huobi.pro$0.62710.00001426
probit.com$0.62510.00001433
coingecko.com$0.6496$0.94400.000014910.00002171
upbit.com$0.6261$0.94810.000014310.00002167

That's a cool embed.. is it just a screenshot or will it change and update?

Yeah! it is indeed a cool embed. Isn't it? :)

And nope, it's not a screenshot (a picture) it's actual text in a «table» therefore you can copy&paste its content wherever you want. This data shown in the table above was from Monday 09/20/2021 at 9:30am UTC. And this below from right now Monday 09/20/2021 at 11:54pm UTC. };)

USD/HIVEUSD/HBDBTC/HIVEBTC/HBD
ionomy.com$1.25000.000011100.00002001
bittrex.com$0.6050$0.91990.000014000.00002154
binance.com$0.59850.00001399
huobi.pro$0.59750.00001403
probit.com$0.59800.00001401
coingecko.com$0.6020$0.92990.000014090.00002176
upbit.com$0.5844$0.93410.000013700.00002190

or will it change and update?

Yeah, as you can see, it can change and be updated. But then, I'm afraid smooth and the HBD stabilizer will have to share a good slice of that reimbursement with me for my services. Hahahaha

I like it!

deserved upvote

Wow 3.6 million hp

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Check out the last post from @hivebuzz:

Hive Power Up Month - Feedback from Day 15

i vote Both And so hope full

I like you all

why not a proposal for HBD liquidity pools to stabilize HBD then your funding and the pools can help stabilize you guys can stop the 10,000 in HIVE upvotes a day on the same 10 daily comments?

They don't serve the same purpose.

A liquidity pool stabilizes the price at anything. If the price is $2, a liquidity pool will 'stabilize' it at $2, in the sense that the liquidity allows you to trade more at $2 without moving the price, potentially even making it harder to get back to $1. That being said, liquidity pools provide liquidity, and liquidity is definitely useful. If people think we should subsidize that (certainly a case can be made), then go ahead and make a proposal to DHF and try to get stakeholders to vote for it.

The HBD stabilizer, which is support by the hbd.funder comments, stabilizes to the peg. It's trades are conditional on the relationship between the peg price and the market price. It doesn't actually provide liquidity particularly, though at times it can have that indirect effect.

These are two different things.

Finally, as @blocktrades has said many times, the hbd.funder comments also fund DHF itself (since all payments to HBD stabilizer are then eventually returned to DHF). That has nothing to do with liquidity at all, or even HBD, but is completely different purpose for the comments and reason why some stakeholders vote for them.

Thanks again, just seeing more and more sharing this in a negative way taking a very large % from the rewards pool. I just try to better understand and provide solutions if possible and in this case with a peg I have none.

It is not really 'taking' from the reward pool, it is moving from one reward pool (content voting) to another (DHF). Not everyone will likely agree with that shift, and that's okay, but those stakeholders who do support it have well-enunciated reasons for doing so.