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RE: What Is The Inflation From HBD Interest? How High Can It Go And Is It Sustainable?

in LeoFinance • 2 years ago

Well, till we have a 10x availability of HBD it will take some time, so no worry on inflation. There are counter measures that can be taken to reduce it, if we see that it is going the wrong way to keep the peg.

Thank you for the good analysis and explanation.

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2 years ago in LeoFinance by
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     2 years ago  

    The inflation rate will likely only enhance the peg since it will enlarge the market cap, hence reducing the volatility. Also, we will increase the liquidity and, hopefully, the number of places we can find HBD. This will open up more arbitrage opportunities.

    That is vital for a solid peg.

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