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RE: How Are Stablecoins Doing Under The Current Market Conditions? | A look at the top Stablecoins | Dec 2022

in LeoFinance3 years ago

tokens like DAI, UST, HBD that are backed by other crypto as collateral, and/or using conversion on chain operations to maintain the peg.

If you could answer, it would be awesome as I have a question: What could be a possible scenario when there could be a depeg with HBD?
Like if HIVE drops drastically or some collateral, something like this could effect HBD's USD peg?

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HBD can deppeg by design. I have posted about this many times, and most hivers are awere of this. Its called the haircut rule. If the hive debt reaches more than 30%, then HBD is no longer vallued at one dollar. This is a safe mechanisam to prevent UST scenario. When market improves and the debt ia lower, then hbd will be valued at one again.