RE: HBD: The "Safe" Stablecoin?
You are viewing a single comment's thread:
That is very good thinking. However, I wonder - if the interest rate has gone from 7% to 10%, does that also mean it can go back to 5% for example. Does that have any effect on its stability?
0
0
0.000
It can go back to 5% if the medium of the consensus witnesses reduce the amount.
I would say that if that step is taking, it will not reduce the stability but to increase it. They might need, at some point, to lower the interest rate to deter people from piling into HBD if the price is moving up too much.
But then that is where arbitrage comes in and the HBD Stabilizer.
So there are a few tools that are available to try and keep the peg. The interest rate is only one of them.
Posted Using LeoFinance Beta