like the use of liquidity pools, making it an algorithmic stable coin (currently it has nothing besides the Hive conversion to actually peg it)
It's hard to pin down the dumbest comment you've made in this post, but this may be it. "nothing besides the Hive conversion" is really dumb. The two way conversion is incredibly powerful at allowing for the peg to be maintained (much more powerful than a liquidity pool).
Liquidity pools don't target a peg at all. They are agnostic to the value. (As I'm sure you know, but following up here to agree that comment was dumb.)
Nobody ever said they did. The point you're misrepresenting was people theorizing that more Liquidity Pools, and those LPs being picked up in price feeds, would help stabilize the price of HBD.
I don't actually see what more liquidity pools would do. There are liquidity pools now, and anyone who wants to invest in them can. So the stabilizing effect is there. In fact it is reasonably stable, and that may be one reason.
It's not enough to stabilize the price to the peg however. For that you need something that is contingent on the relationship between the price and the peg, such as the conversion functions and the stabilizer bot.
I agree that should be done, but, in practice, is there a big difference in the price on the pools and the price on centralized exchanges? I suspect not, and if there is not, then adding these pools to the price feeds wouldn't do much.
Do you think there is value in a liquidity pool with USDT on BNB or BSC and other dollar pegged assets with HBD? I don't know if I am the only one here, but I sure wish I could go directly from USDT to HBD without some floating asset in the middle several times and all the while losing a lot of value with fees.
Does this suffice?
https://hive.blog/hbd/@dalz.shorts/the-best-place-to-buy-hbd--beeswap
Thank you but what I need is a way to transfer USDT that lives on BSC chain to HBD which lives on Hive. So perhaps if there is another step or set of steps to get from USDT to SWAP.HBD, then I could make convert it that way. It's fine if privex supports it because then I can spend it there.
Doesn't Binance convert USDT to BUSD?
is the talk about the internal liquidy pool or general liquidy pools?
I mean with conversion mechanic integrated into a pool ( or on top) with auto compound + initial investment from DAO, HBD could become real stable. Because the fear of a bottleneck is gone ( for large amounts).
I'd have to see a very specific proposal to comment. That's more than a pool, and we already have conversions and pools, so I'm not sure anything is actually improved by combining them.
In general, I truly believe more liquidy on HBD/Hive + conversations ( from HBD-stabilizer or community in a fund) will help massively in terms of:
Make HBD more stable, because larger trades are possible (less fear of get stuck) + more attractive to maintain price, because of larger amounts can be used for that ( look exchanges trade BUSD/USDT in xx Millions and make some profits).
But for that volume is needed :)
And if the pool has some base investment from DAO that never will be withdrawn, it would work as a burn/ DEFI 2.0 with contract-owned liquidity.
I would also expect, it's a good sell point for HBD " look you can trade 1 Million USD at once.
With a swap fee that auto compound, I see a working instrument that can help to make HBD more stable.
Remove the fear of bottleneck is in crypto a super power and a onchain pool L1 would be the most decentralized DeFi protocol in the entire crypto space.
This made me laugh. Thank you. :)
If that's so, why does the HBDStabilizer require $2.4M a month from the DHF and another $10k+ per day from the comments.
How much does the 2-way conversion cost (create in inflation)?
The funds from the stabilizer flow back to the DHF. And the DHF profits from it. The stabilizer acts as a mini-profit center for the DHF. This has been explained many times in posts in the past. You constantly repeat the same questions without bothering to discuss the answers you're given.
This has also been discussed in depth in other posts, but it's a mildly complicated equation with no guaranteed direction (inflationary or deflationary), because it can depend a lot on whether Hive goes up or down in price (there's also a 5% burn factor on Hive->HBD conversions). But so far it has made Hive net deflationary (because Hive price has tended to go up and because of the burn factor).
@dalz just recently wrote an detailed and informative post on this very subject. I feel like you should take a little more time to read what others have written: https://hive.blog/hive-167922/@dalz/hive-ends-2021-deflationary-with-2-73-or-a-look-at-the-inflation-and-supply-for-december-and-2021
liquidity pool (Hive/HBD as internal marketplace V2) + conversion mechanic = superpower.
I don't read everything above, so it could be out of context :)