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RE: Weekly Hive Stats Report - Monday, August 16, 2021

in Hive Statistics3 years ago

I think the reason it is so big is because we can use the same funds multiple times.

First, HBD is overvalued and presents an arbitrage opportunity.
Then convert hive to HBD using the new feature.
Instant HBD payout occurs.
Use the instant payout to buy hive again, and repeat the conversion with those funds.

If I had 10k hive initially, I'll still have around 4.5k even after the conversion, considering I use the HBD received to buy back hive.

Repeating the process leads to huge amounts of leverage. Someone with 10k hive can effectively convert 10 + 4.5 + 2.2 + 1 + 0.45 = 18k hive to hbd.