I'm new to HIVE and recently bought some with your excellent service (really, easy.) Can you explain to me how HBD is even made so I understand this better, or point me to resources?
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I'm new to HIVE and recently bought some with your excellent service (really, easy.) Can you explain to me how HBD is even made so I understand this better, or point me to resources?
Here's a post written for SBD, but it also mostly applies to HBD: https://hive.blog/sbd/@timcliff/sbd-explained
One thing that was added later, so it is not described in the article above, is that HBD is also created from Hive that is transferred to the Decentralized Hive Fund (DHF). The DHF only pays out to proposals using HBD, so this auto-conversion of Hive to HBD mechanism was added to allow for people to donate Hive as well as HBD to the fund. This mechanism is now being used by the hdbstabilizer bot to create more HBD (increase the HBD supply) and push the price of HBD down to its peg price.
That you feel there is a need to put downward pressure on a peg. That shows the error itself. The only time the chain should feel pressure to the peg is in bringing the value up to the peg.
Like you have said in one of your replies here, Buying HBD above the peg is dumb and a very high risk. Yet the value of HBD soared to almost 3 times it's peg value.
How much HBD has been used to put downward pressure on the HBD now? must be getting close to half a million if not more. and still the HBD is over twice the value of what it should be, The price has actually gone up since this downward pressure has been applied.
HBD is created through the daily rewards pool and at times you can gain some to your wallet in rewards for comments or posts.