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hbstabilizer: conversions added by smooth

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· @smooth · (edited)
$58.82
hbstabilizer: conversions added
The original proposal for the HBD stabilizer included the following:

> If the price is below LOW, use the HBD to convert into HIVE (takes 3.5 days). Upon completion of the conversion, use the HIVE to buy HBD and send that back to the DHF

This was not originally implemented, and has now been added, with a small modification. Rather than committing to use HIVE to buy HBD, the decision will be made at the time the conversion completes. If the market price of HBD at that time is above $1, the HIVE will be sent to the DAO instead (which performs an automatic conversion assuming HBD=$1).

Because there is some risk of conversion not resulting in a profit (due to market fluctuations during the 3.5 day period), LOW has been set to 0.97. This provides some safety margin.

_100% beneficiary to @hbdstabilizer_
👍  , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , and 247 others
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vote details (311)
@akumagai ·
Upvoted because I think this is a good thing for the whole platform.

Yeet!
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@dalz ·
$0.34
> If the market price of HBD at that time is above $1, the HIVE will be sent to the DAO instead


Why not accumulate some hive in the account.... like a buffer ....
👍  ,
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vote details (2)
@demotruk ·
$0.34
It will do that now, as it's not returning the Hive unless HBD price is above $1.

I don't think it needs to be more than that, as the more Hive/HBD the account accumulates, the more attractive it is to hack/steal. It isn't a trustless system until more is done on the consensus level.
👍  ,
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vote details (2)
@dalz ·
Yea I was thinking some amounts bellow 100k or something ... to be able to push the market ....
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@smooth ·
Seems like adding both credit risk and price speculation to the DAO. Not really the intent here.
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@disregardfiat ·
$0.44
A raging yes from me! If stabilizer can keep the price close to $1 it should be able to keep it above 95 cents as well. At 95 cents you've already given up that 5% interest you've been working toward! Thanks for implementing!
👍  , ,
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vote details (3)
@smooth ·
Yes that was part of my motivation. It seems like supporting the price when it sags might ultimately help increase demand for HBD as a yield asset, for exactly the reason you stated.
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@guruvaj ·
$0.42
Is it running now this new conversion, or it will be included on the upcoming HF25?
👍  ,
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vote details (2)
@smooth ·
It is running now. The @hbdstablizer bot runs as an application, doesn't depend on the hard fork.
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@guruvaj ·
♥️🇵🇭♥️
Thank you for this development.
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@hivebuzz ·
Congratulations @smooth! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :

<table><tr><td><img src="https://images.hive.blog/60x70/http://hivebuzz.me/@smooth/payout.png?202106150548"></td><td>You received more than 362000 HP as payout for your posts and comments.<br>Your next payout target is 364000 HP.<br><sub>The unit is Hive Power equivalent because your rewards can be split into HP and HBD</sub></td></tr>
</table>

<sub>_You can view your badges on [your board](https://hivebuzz.me/@smooth) and compare yourself to others in the [Ranking](https://hivebuzz.me/ranking)_</sub>
<sub>_If you no longer want to receive notifications, reply to this comment with the word_ `STOP`</sub>

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@kennyskitchen ·
I really don't understand how you decide what to downvote...

I've had a couple posts this week that got way bigger than normal payouts (newsflash votes), and very little conversation or anything...

Then yesterday's post gets more interaction than anything I've posted in months (and most things on trending), is less than half the payouts of those others, and you give it a downvote that removes more than 50% of the payout :-/
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@nonameslefttouse ·
Your post didn't get engagement (very little, like usual).  The TWO WORDS I left there in the form of a question is what got engagement.  My post, under your post, is what people were talking about.  That engagement exists because of the conversation I started.  You can't take credit for that.  
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@smooth ·
If I happen to see something and think its overpaid I will downvote (also plagiarism or such but that's not the case with yours to my knowledge). I'm not a fully time curator so don't expect consistency. I miss a lot.
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@nonameslefttouse ·
$1.17
The engagement he's talking about was actually people engaging with a comment I left there...  *Just sayin'*
👍  
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vote details (1)
@mistakili ·
Awesome. Thank you
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@tobetada ·
great!
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@ahmedblog ·
Thanks for your development
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@urun ·
I think this should be after the HF a job for the community. But why not :)
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@xplosive ·
$0.41
If the Hive Dollars (HBD) is below $1 USD, then buying it with Hive is probably a good and safe investment, because it will eventually go up to $1 USD. Currently it is $0.9585 USD. This means that if I would buy Hive Dollars (HBD) now, then I would win $0.0415 USD on each Hive Dollar (HBD) I would buy now. This would mean $4.15 USD with 100 Hive Dollars (HBD).

What do you think about this? What do you suggest to those, who are looking for good and safe cryptocurrencies investments?
👍  , ,
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vote details (3)
@demotruk ·
$0.41
You'd essentially be acting as a market maker. You can expect that others will convert at such prices, eventually bringing the price back to $1 or above.

It is not without risk.

1. If Not enough other participants are doing conversions, the price could remain low. You could be forced to sell low or do the conversion yourself (with the associated risks).
2. There is also the risk that you hold until HBD goes into haircut, when you don't get a full $1 per HBD. This risk should be seen as an unlikely outcome, but you could lose pretty much all the purchasing power potentially.
👍  , ,
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vote details (3)
@smooth · (edited)
$0.05
Buying to speculate and buying to convert both can make sense when HBD is below $1. @demotruk describes some of the risks. Also to consider is that you can earn interest (on all HBD currently, on savings after the upcoming HF25). If you buy at 0.95 and the nominal interest is 7% (as it is currently), you are actually earning 7.4% (assuming the price does go back up to $1).
👍  
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vote details (1)