RE: Hive Backed Dollar-to-Hive Ratio To 30%?
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@blocktrades is very risk-averse so it's nice to see that the 30% target is at the top of the list. Even though this is likely the safe play, it's crazy to think that it is x3 higher than the current limit.
At the end of the day the 10% haircut is an embarrassing crutch that we need to remove ASAP. It should only kick in during the most dire of circumstances, but instead we are using it all the time. Very good to see that it will be raised in the next hardfork. Couldn't have hoped for a better outcome.
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He also said that AMM for Hive is currently really difficult to implement. Is anyone working on that? Just mention it because I think it would help stabilize HBD and you made a post about it
I'd be curious to know why AMM is hard to implement.
The math is absurdly easy (x * y = k) and we already have time-locks and contracts of that nature.
I've actually already programmed this functionality myself and it seemed trivially easy.
I must be missing something big.
Unless the problem is that no one wants to print more Hive to support it.
I could see how the politics would fail but not the technicalities.
Also Blocktrades is a liquidity provider so he has a direct financial incentive not to do it.
Kind of silly, nobody is making big money off of being a Hive service provider at this point with the low total market cap, low profile, and small base of users and investors. The only game worth playing is to hope the token price goes up and/or work to make the token price go up.
That makes sense but I've yet to witness a single dev on this entire platform that just works for free trying to build value without worrying how they are going to get paid. The original question still stands: what technical barriers stand in the way of scrapping the internal market for Hive/HBD AMM? Why deflect the conspiracy theory instead of just answering the question?
Ah, see what I did there?
Doubled down on the conspiracy.
Now you're in on it too.
Damn I'm good.
Never claimed his service was free by any means.
Already answered this in another reply.
He didn't say really difficult, just too much for the next hard fork (months away, and probably not that many). For completely new functionality like that it would need to be carefully designed, implemented, and the code extensively audited and tested. If we want to do that we need to start planning in advance of an upcoming hard fork. It's a matter of time, not so much difficulty.
great to hear!
He does believe 50% can be done without much of a threat but stepping up the levels appears to make some sense.
I am for 30% this HF and then spend the 6 months after that analyzing how things are working. If all goes well, perhaps add another 10% or 20% to the 30%.
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I'm fairly certain we will be higher than 100% in ten years.
Banks have been getting away with 500% just fine for decades.
500% haircut rule?
That would mean 10B MC = 50B HBD in extreme.
Could end up one crypto winter kills hive tokenomics with 500%.
I don't know...
This community has already endured a 99% loss $8 to 8 cents.
The haircut did nothing to stop this: in fact the haircut made it worse.
Thanks that made my day :)
We are not here to earn any money, lol :D I love that. But I think the reason for a stable coin is a bit different, haha.
Really made my day!!!
Not sure HBD has much of a part to play in any of that.
This token is only now getting some attention after being ignored for so long.
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but 30% on a moving price is really risky.
if Hive has 1B MC ( and I'm sure we become sooner as we think) we would generate 300M HBD.
To be fair, Hive can be also fall back to 100M MC.
so we would have 300M HBD. With that in mind, I think we should remove HBD and replace it with a lock-up mechanic than increase the limit that can influence inflation.
BTW, 300M would mean by a crypto winter, people lose a massive amount in value of HBD. Even if you only have 100$ in it. The experience of that 100$ becomes worth 30$ is really bad.
Except in that instance, people would likely start to convert HBD to HIVE, providing a floor in how far the price of Hive could drop while also reducing the supply of HBD.
Just like we saw "massive" printing of HBD when it was at $1.20, we will likely see the opposite on the downside as the price drops in relation to Hive.
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Wrong logic.
No floor.
Converting means more supply into more dump.
Special if the haircut is close to coming into place. Market movements would become more extreme because this is like leverage trading.
If we have 30% or 20% and we jump to 10$/ Hive, we will see hive will be the first failed chain in terms of stablecoin. If we are increasing it by more than 30%, tokenomics would bust. Think about 50%.
Price goes to 10$. Stays there some days. Pumps to 12 because of massive demand for hive to converting.
Price falls back to 2$. MC would be at this point 800M so we could have 400M HBD.
Could be 200M Hive by converting. Dangerous as hell if we think DAO only holds 70M and we have around 130M powered up.
I see only negative effects. Special it will never work with the peg to an dynamic asset.
Collateral versions are dangerous too, but would only affect the collateral. Not the hole chain.