RE: ##### Hive to HBD conversions are weird.

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Confusing as hell? Yes.

But the reality is most should not be using the conversion mechanism. Many think that is how to arbitrage. People need to use the internal exchange for their swaps and leave the conversions to the bigger fish. Of course, having better documentation could really help out.

For those who understand (and are willing to take the risk), have at the conversion feature. For everyone else, sell or buy on the internal market. It is the best approach.

Of course, for those who like to get a bit fancy, can also arbitrage using pHBD.

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It's a super advanced feature for arbitragers, true.

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Yeah and the time delay makes it impossible to see if a move is profitable or not. Isnt arbitrage designed to take advantage of pricing inefficiencies and move if profitable? How can you do it when the prices can change by 20% in 3.5 days?

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I agree that the conversion mechanism is not an arbitrage thing. Actual arbitrageurs keep an eye on multiple markets and if they see bananas are cheaper in Minnesota than Minneapolis, they re-route them tactically. Making sure enough bananas arrived from Colombia is usually someone else's business.

HBD<->HIVE conversion is the strategical level. The difference between HBD and banana situation is that it is easy to get an extra shipment of HBD so arbitrageurs can easily service themselves even though they usually prefer not to touch it.

The casuals are less sensitive to having the funds locked over 3.5 days than the arbitrageurs. Ironically, they are also more scared by the price insecurity, while arbitrageurs understand that a big HBD pump raises HIVE price so the 3.5 day median is a big favourite to be the better price than the instant trade.

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I would love a rinse and repeat tutorial post on how small stake accounts should approach this. I just sat there and watched the pump with no clue. I would have liked to have been able to grow my stack by $10 or $20.

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