Hive Dollar Monitor: Track All Important Stats of HBD In 1 Place

in LeoFinance3 months ago

With new Hard Fork 25 there's serious commitment to making HBD into a competitive stablecoin. Earlier it used to be only a coin with price floor instead of real stable peg to USD.

Allowing 2 way conversion between Hive <=> HBD opened a way to more price stability. @ausbitbank developed a tool to keep track of all HBD stats you need to get a good hang of the market conditions. It's also a nice place to send new people to when you want to teach them about HBD.

Perfect For Competition

  • Steem made no changes to SBD
  • Blurt removed stablecoin (No BBD)
  • Hive has 2 way conversion for HBD

We've got all 3 scenarios to test things out. Whatever happens best solution will win. Maybe the best solution is having all the options and using them for different investment types.

SBD Had Gains! HBD Has Stability!

HBD has 7% interest which is really cool. So you're not loosing much. In fact it might be the better way since there's already so many other crypto that can pump their price 😃

Hive Dollar Monitor.png

Hive Dollar Monitor

We've created the Hive Backed Dollars (HBD), a token that provides a stable utility value when transacting on the Hive platform or anywhere else where zero fee Hive Tx are accepted. I see few super powerful use cases to pick HBD over other options in the market.

  • We've stood the test of time (5 years!)
  • No trust in central system (like USDT)
  • 100% transparent with no sketchy stuff in code
  • Strong price floor
  • More arbitrage opportunity

Let's Talk About Last 2 Points

We've seen tons of stablecoins crash their prices. We've seen them fail miserably because of tough market conditions or problems in code. HBD has been tested for 5 years & it's backed by Hive Blockchain marketcap.

This is super capital efficient. No collateral is locked. It's just the smart contract taking care of a promise in the DAO way 😃

Prices are pretty much guaranteed to not fall hard. Hive is the strongest social media blockchain in the crypto game with most Dapps & front ends. It's hard to fail there.

USDCUSDT.png

There are these Yield farming DeFi Dapps where folks are trading what's basically 2 crypto that's pegged to the exact same value. Why?

Cause there can be fluctuations in market prices. because of history of HBD and how it's stabilized, opportunities for trades like this could be far far far far far far far better compared USDC-USDT pools. That's a huge perk while having similar risk profile.

Speaking of Risk (& Flaws/Drawbacks)

  • Stability of HBD price could be slow to achieve
  • HBD may not always be $1
  • Larger range of price movement
  • Limited issuance based on Hive marketcap
  • Hive goes down - debt haircut happens weakening peg
  • Makes things complicated for Hive

That's a main reason why Blurt completely got out of stablecoin game never creating a BBD. @demotruck made this post Ned Scott was right about one thing & it says we'd see more volatility in Hive when we try to stabilize HBD. Makes sense to me when I try to think about it.........

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So from the point of view of the tool, we always want the total HBD amount to be less than 10% of HIVE's marketcap. I am guessing this is for the unexpected situations but what happens if it goes above that?

Posted Using LeoFinance Beta

 3 months ago 

Conversion from HIVE to HBD stops and posts also stop printing HBD.

The DHF is not affected as far as I know.

Thanks for the info.

So if HBD stops getting printed, it would probably increase the price of HBD and eventually people would exchange their HBD for HIVE right?

Posted Using LeoFinance Beta

 2 months ago 

If the rate is favorable and HIVE is what they want, yes.

Cheers buddy nice way to explain this and nice page for stats !PIZZA

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@d-zero! I sent you a slice of $PIZZA on behalf of @monsterjamgold.

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Thanks 😃

This is so cool. Thanks for letting us know about this @d-zero. HBD can become a favorite Stablecoin interested in DeFi opportunities and of course e-commerce.

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Thanks for the promotion 😃
!PIZZA

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@finguru! I sent you a slice of $PIZZA on behalf of @d-zero.

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Your post was promoted by @finguru

👍😃

It really seem all of that is pretty complicated 😅

I see something that works for me. 7% APR for staking it, I'm in

Thanks for sharing ! !PIZZA

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It's a safe and easy earning that could work really nice during a bear market.

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@d-zero! I sent you a slice of $PIZZA on behalf of @ykretz.

Learn more about $PIZZA Token at hive.pizza (1/10)

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