This. HBD is a lot more risky than most ppl on here make it out to be, at least for positions of any meaningful size.
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This. HBD is a lot more risky than most ppl on here make it out to be, at least for positions of any meaningful size.
I mean Hive has to drop under 5 cents for the haircut to even start haircutting at the current debt ratio.
Probably more like 4 cents... maybe 3.5 depending on the conversions done up to that point. Then price has to drop even more from that level before actual conversion rate is lost. The current 30% debt ratio is greatly in the favor of HBD holders... which is good because it's a confidence game and we don't want people who hold HBD to suddenly all lose confidence and perform a bank run.
That was the entire point of bumping it from 10% to 30%, because if we hadn't of done that we'd of hit the haircut again this cycle and there would have been yet another confidence crisis for literally no reason other than 10% is too low to account for the volatility.