Minor HBD stabilizer change

in #hbd3 months ago (edited)

I updated the cutoff price for converting HBD into HIVE from 0.97 to 0.99. The reason being that, despite there being some risk to the conversion itself, receiving HIVE after 3.5 days provides a second opportunity for the stabilizer to earn a profit (and stabilize the price of HBD) by buying HBD for under 1.00. In the event that HBD is at or over 1.00, the HIVE can be sent directly to the DHF, which converts it at 1.00, so no loss. Overall this is an expected profit for the stabilizer/DHF.

Theoretically, by this logic, we could use 1.00 as the cutoff rather than 0.99 but there are some other small frictional factors (some of which can be fixed). So 0.99 is a bit safer for now, in terms of ensuring that the stabilizer effort either makes a profit for the DHF or breaks even.

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Is there no risk the DAO becomes significantly less if hive should rise in price? It doesn't matter for now, because the funds are not in the 100-thousands.

But in theory, if enough funds in the game, it could be worth the to money attack it right? Because it works like a market maker.

The premise of conversion is that it is hard to manipulate the price over 3.5 days. Unless it is manipulated it is just normal market risk. Sometimes it rises, sometimes it falls, should average out.

I can't say that some way of profiting would be impossible though, if the amounts are large enough, but probably not at anywhere near the current volume.

I will monitor it a bit. If I have a bit more time, I do the math behind.

IMO there is a risk at the moment, that would be worth looking at. But I can imagine on Higher hive prices, it can be worth attacking. Special if the Volume is very high.

But on the other side, it would be similar to and defi pool. With the difference, it can become empty :).

Nice! Moar profit now means more cake to feed developers later. Will go kick my stabilizer voter bot to make sure it's still going. Good work.

I want to benefit in the right way.And many want to own a much bigger SP!I don't know when I will be able to?Thanks @smooth Enjoy the feeling you feel after your post. I did.

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wow the front-runners adapted fast 😃

All right, the whale experiment may be back!

Thanks for sticking with us.

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