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RE: HBD Defenses: How HBD Is Different From UST by urun

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Viewing a response to: @taskmaster4450/hbd-defenses-how-hbd-is-different-from-ust

hive-167922 · @urun ·
$0.05
Yeah but HBD can destabilize also. I see no difference only some different parameters.

( i only look at quality at the stablecoin)

If on Haircut limit and market drop 50%, HBD token loss 50% in value.

will someone convert here? probably not.

Hold?

market drop more? Who bails out? Nobody. A same result like luna with the difference it doesn't damage that much underlining asset.

The underlying asset ( hive) gets shredded on a slow and long drop


Our Attack vector is hive price. If we have for example 1 Billion HBD and Hive is at 10$ + ( increased HC limit to 25%).

Or 40$, what you like more. If price drop 50% at this point HBD is dead. Trust is gone. And a death spiral because of lost trust would also start.

Where is here any difference?
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vote details (2)
@blocktrades ·
$0.15
It is completely different from LUNA, it's not a matter of parameters. 

With a 30% haircut ratio, it is only possible to add 30% to the supply of Hive, no matter what price Hive drops too, because the haircut causes the peg to break. So you can't generate a death spiral. 

We predicted and patched the flaw that crushed Luna many years ago.
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vote details (5)
@urun · (edited)
yes luna is an obvious Ponzi.

And an attack on hive in "inflating underlining asset" is only slow and steady possible with a volatile market.

But, I see no difference between the stablecoin from luna and Hive. And that's precisely what I'm writing above.

If HBD is on haircut limit and hive price drops 50%, HBD is worth only 0,5$ How can this be a stablecoin? 

Can also destroy lives and start a death spiral caused by trust. 

From Bull to bear Hive can also fall 70% from high to low. Luna was weeks on top.

Those weeks can allow to build up HBD in terms of hive. 

And with that debt in mind and an unstable stable coin, where is the difference?

UST becomes unstable because the internal swap mechanic stops fair pricing, arbitrage was not possible and luna market depth could not absorb it.

it starts early with around 10-25% difference, i have screenshots from it.

The chain-killing inflation comes after "peg the token again".



Back to the point, the only difference to hive is, that the underlying asset becomes not inflated that much, and the stable coin becomes worthless ( not stable). 



Why not delete HBD and create a dai copy? No inflation risk and bear market-proven? 

I like this idea for years and it's solid. No impact on inflation is a super power.



And Btw, 30% are theoretical. If someone converts HBD to Hive in increase the Hive market cap and allow to convert more next time.


so if 30% of the 30% would be converted and again we end up with 50% if price would be the same. 

If the price drops because of new HBD the stuff can become worse and worse.


will be always a smooth exponential curve.
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@blocktrades · (edited)
> Back to the point, the only difference to hive is, that the underlying asset becomes not inflated that much, and the stable coin becomes worthless ( not stable).

That's a huge difference. 

And in the normal scheme of things, the description of HBD value during a haircut scenario is "worth less", not worthless.

For the most part, HBD holders can mitigate a lot of potential risk of a loss due to the haircut rule by monitoring the current haircut ratio percentage and exiting their HBD position if the percentage goes too high for their comfort zone (gets too close to the haircut ratio). I've used this strategy a few times myself very successfully.

> so if 30% of the 30% would be converted and again we end up with 50% if price would be the same.

I don't view this scenario the way you do. If all the HBD got converted to Hive, expanding the supply by 30%, and the price stayed stable for long enough for a lot more HBD to be created to potentially repeat the cycle, then I think Hive successfully weathered the increase in supply.
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vote details (2)
@urun · 
In super short, if hive price falls who pays the debt?

The HBD holder.

How can this scale in the volatile crypto tech space?
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@blocktrades · 
The HBD holder assumes the risk of a peg break in the event of a catastrophic fall in the price of Hive, assuming they don't exit their position before the haircut rule kicks in. But investors in HBD can monitor the risk level (i.e. how close HBD is to the haircut ratio and how much they think Hive may drop in price) and make an informed investment decision. 

And it's not like a collateral-based system doesn't imply the exact same risk, unless the collateral is the same as the underlying stable coin. 

And even if it is, then you have third party risk. For example, say someone is promising to back to a USD stable coin with real dollars (ala Tether). What happens if those dollars disappear?

All investments have risks of one sort or another. Personally, in the crypto space, I think HBD is one of the safer places to invest for predictable returns and I've taken advantage of it several times in the past (currently I think Hive is more attractive at current price, however).
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vote details (2)
@world-travel-pro · (edited)
Hahaha....you just down-voted me for the first time! Since having your low level scum do it for months. Explain to the people why this post deserved to get downvoted. The fish rots from the head down and you're the head of this rotten fish. Funny thing is, I'm now dissapointed if I don't get downvoted! De-fanged! You all suck. Can't wait for Hivefest where I can call you all out to your faces! Can't hide behind your computers there can you?

https://hive.blog/hive/@world-travel-pro/it-s-a-bacon-buffet

Thank you for demonstrating what a corrupt house of cards Hive is. You rock! Keep up the great work. Can't wait for my next downvote. You sick rich corrupt satanic pedophile. I know exactly what you and Larimar are. You should all be locked up, capital punishment fits the bill. Married with no kids, what a trend over there. Creepy freaks. Tell lurch I mean @gtg to go choke on a perogie.

<p><center>https://img.blurt.world/blurtimage/world-travel-pro/a7100025abc090a343b413dbfb82cd48fd5c18b4.jpg</center></p>
<p><center>Click <a href="https://blurt.blog/">here</a> to join!</center></p>
<p><center>Click <a href="https://blurt.blog/blurt/@world-travel-pro/ten-reasons-it-s-better-on-blurt">here</a> to learn more!</center></p>
<p><center>Learn how Hive is a totally centralized platform <a href="https://hive.blog/proposals/@world-travel-pro/shocking-down-vote-button-imposed-weapon-of-choice-for-organized-network-of-corrupt-power-brokers-on-the-hive-blockchain">here</a></center></p>

<p><center>Learn how Hive is destroying itself and driving investment towards Blurt  <a href="https://blurt.blog/blurt/@world-travel-pro/ten-ways-hive-is-destroying-itself-and-driving-investment-towards-blurt">here</a></center></p>

<p><center>Find out who is in full control of the Hive blockchain <a href="https://hive.blog/hivecommunity/@world-travel-pro/red-alert-wealthy-satanic-pedophile-network-in-full-control-of-hive-blockchain-fbi">here</a></center></p>


Oh I see you came by and with your entire big money crew are attempting to knock my rep from 77 down to zero. lol So you can sensor me. That's funny.

I will now be concentrating all my comments directly where it counts the most. And I think by year 2025 I'll be greyed out. You should just fork my account out, Justin Sun style. I'm sure you're not above that. You disgusting pig.
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@cwow2 ·
$0.29
Maybe you get downvoted for calling people satanic pedophiles x)
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