The HBD stabilizer sells as well as buys. It operates on both sides of the equation.
It depends upon what people want. If the price of HIVE tanks, you might actually see more move into HBD. Why hold onto a falling knife?
But then it comes down to people's interest. That is why I listed the different use cases. All target different criteria that people have.
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Right, but to keep hbd stable in a falling Market it requires the amount of liquidity needed to have hbd available, correct?
If there isn't enough hbd when the stabilizer needs it, it fails?
The stabilizer actually provides the liquidity. It is given a certain amount per day from the DHF that allows it to trade. So whichever direction it is needed, to buy either HBD or HIVE, it does that. Thus, it is actually taking on the other side of the trade.
We need more liquidity for larger transactions though than just the Stabilizer. Right now it works but if we get people wants hundreds of thousands of HBD, it is going to be a grind.
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Ok, now I see where it gets most of its hbd from and my question is answered. Some is funded through artificial post and comments earnings though, so not all of it. I.e. whales upvoting stabilizer spam posts and comments with 100% to add more funding, so it doesn't rape the dhf.
Correct. There was a proposal submitted that was approved by the community. It provides the Stabilizer with a daily payout (actually hourly) that is used to trade on the Internal exchange.
This is providing liquidity. I think the difference between what is on the exchange and where the stabilizer sits is 1%.
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