RE: UST: Incompetence, Greed, or Both?
You are viewing a single comment's thread:
The lack of liquidity doesn't help.
HBD exists on basically 0 exchanges now.
And it didn't have good liquidity before that either.
There are several things we could do that would make HBD more stable.
Liquidity is the backbone of all of them.
Be it CDP loans or yield manipulations or internal market AMM or exchanges or whatever else
0
0
0.000
We can't just give more money to the stabilizer?. It's meant to help with liquidity, right?.
Not a great solution because then the stabilizer would be selling the bottom to support the peg and buying the top. We need to figure out ways to create an inverse relationship where the value/demand of HBD goes up as the value of Hive does down, without dumping Hive at the bottom to do it.
What if that collateral is done with BTC. I mean Hive could have a kind of a DAO with different crypto as a way to balance HBD, without dumping Hive.
No because the stabilizer is getting paid all the DAO distributes each day less what is paid to other projects that were voted in. So it gets the max it can.
It does a good job with the peg on the internal exchange. However, need more than just one place trading it.
Posted Using LeoFinance Beta
Lack of liquidity is a huge factor. Lack of that liquidity brings volatility, not exactly what is sought with a stablecoin.
We need to get to the point where the conversion mechanism is used for elasticity. Have the peg derived from other means.
Posted Using LeoFinance Beta