You are viewing a single comment's thread from:

RE: Why are all (mostly) proposals unfunded

in LeoFinance3 years ago

Thank you for the feedback on this. I don't know much in terms of the coding and how things are structured as I'm sure a majority of people who use Hive don't. But I believe it's always important to learn and understand how anything functions that you are a part of so again thank you for your time on this.

Is there no way to Peg HBD as $1 at all times based on collateral like other stable coins? Again not sure how that works. In terms of payouts I was referring to the proposal system which uses HBD per day. If HBD won't ever be stable then why use it? Why not pay out in HIVE from the pool and calculate what the $1 value to hive is each day on the payout to those projects? Thus removing HBD (most likely can't do this though since there's a good amount of capital behind HBD and it's been in the system since it's birth)

I don't know best, this is why I vote for proposals you all are the devs and know it better than me but it just doesn't make sense how we can't code HBD in a way to make it stable if that is in fact what we want it to do and be for payouts on proposals and dev work. Maybe I'm totally wrong and the HBD proposal funder is really the only solution it just seemed really odd to me to me that this was the "best" or only option.

Sort:  

HBD works pretty decent when it goes below 1 dollar. The reason for that is that when the debt ratio is below 10% you can always convert it to ~one dollar's worth of hive. Under those conditions traders can buy them below the peg, then do a conversion and sell the hive for a profit. That creates buying preasure for HBD that brings the price back up.

There is no way to create new hbd on demand when the opposite happens. That is what is wrong with the pegging mechanism. It looks like that will finally be included in the code on the next hardfork. In the meantime the hbd stabilizer is basically converting hive to hbd but the demand is too high right now for it to be 100% effective but it's better than nothing.

image.png

Here you can see that HBD was tracking the value of one USD for most of last year. The moving averages ranged somewhere between 0.95 and 1.00 most of the time. It is not as good as other coins in my opinion due to the low marketcap and the lack of exchanges where you can arbitrage away the deviations.