What Would Be The Reason For The Max 1% Per Day Payouts From The DHF?

in #hive2 years ago

I know the number one would be the security!

Security should be always no.1 no issues with that.
If by any wonder, or some super strange method someone manages to pass a proposal that would drain the assets in the DHF in one day, that is no good.

But why not 2%, or 3%, or 10%?

At the moment the DHF has around 9M HBD in funds, that are quite enough for the regular proposals, but obviously not yet enough for the @hbdstabilizer, since we have seen the price of HBD is down.

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https://peakd.com/@hive.fund/wallet

In time the funds will grow in the DHF, but even at 100M, 1% per day is still only 1M, that can be a challenge to maintain a stablecoin with lets say 1 billion market cap.

If we increase the daily available funds from the DHF to 2% or 3%, that will double or triple the HBD stabilizer funds instantly.

For example we have put in place a 30 days delay on the governance HP. 30 days as a metric is around for the DHF is 3.3%.

The stabilizer is on the front line at the moment for defending HBD.
The ultimate solution would be more HBD liquidity, use cases, listings ..... and more fast, efficient and secure conversions HIVE to HBD. Maybe even create a special price feed for the conversions.

cc @smooth @blocktrades

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If we need more funds to stabilize a peg, then a stabilizer proposal (not necessarily the current one) could hold the funds and use it to trade instead of sending them back. It could be managed by multisig or a smart contract that reduces any risks of them being stolen. I don't think the 1% needs to be changed. I can't see an actual budget situation where you would want to or need to drain the fund in less than 100 days (I know the rate drops as the balance does so 100 days isn't quite right, but close enough)

a stabilizer proposal (not necessarily the current one) could hold the funds and use it to trade instead of sending them back. It could be managed by multisig or a smart contract that reduces any risks of them being stolen.

This sounds like a better option then the current situation.

If we need more funds to stabilize a peg

Having more tight peg in the range of 0.99 to 1.01,would HBD on a whole different level.... that combined with the interest in savings.

I think we should do as much as we can to improve the peg.

i think we need to create a stablecoin pool that includes hbd on an evm chain like avax. the pool rewards would have to come from the dhf. this will certainly require more than 1% per day.

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This sounds like a better option then the current situation.