The Hive debt in the case above reffers to the debt of the chain as a whole. All HBD is a debt on top of the HIVE marketcap.
Its not a traditional borrow/lend.
Basicly the chain allows for conversions HIVE<->HBD, expandind the supply. Its very similar to what LUNA-UST is doing, just differnt words. And they dont have a haircut rule (debt limit) that is quite dangerous.
Debt/credit, used in a proper way is great! This is true in traditional economy as well. Just look the ultra rich no.1 scheme ... buy-borrow-die ....
The trick is to use it in a good way, mange it well and dont overdone it.
I thought we were getting away from traditional finance lol. Where is this debt even being used? Who is borrowing, who is lending?
The Hive debt in the case above reffers to the debt of the chain as a whole. All HBD is a debt on top of the HIVE marketcap.
Its not a traditional borrow/lend.
Basicly the chain allows for conversions HIVE<->HBD, expandind the supply. Its very similar to what LUNA-UST is doing, just differnt words. And they dont have a haircut rule (debt limit) that is quite dangerous.
P.S. I cover the haircut rule and the debt here
https://peakd.com/hive-167922/@dalz/the-haircut-rule-the-biggest-risk-for-the-hbd-price-or-historical-data-on-hive-debt-and-hbd-price