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

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Viewing a response to: @blocktrades/rbut61

hive-167922 · @urun · May 14 '22 (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 · May 14 '22 (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.

👍 urun, gangstalking

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@urun · May 14 '22 (edited)

Yes if time is not a problem to access the coins, I can agree :)

But what is the advantage to other stable coins?

If HBD would be a privacy stablecoin, that would change the game :)

I mean i would really love it because social + finance can be for Real-world influencers a bit to real :D

Maybe Hive and HBD could become privacy coins if chosen and HP is ofc not affected from that.

Or only HBD. I mean that would be a sell point for many people, even with 0 APR on it.

Only a beer idea that i like to bring up from time to time :D


> 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.

All possible scenarios can become problems on the scale.

At some point, it makes mathematically sense to abuse some points. And the community cant does little against it because then all exchanges would cancel hive.

I know there is no perfect system. Money will always find ways to abuse systems. Like water.

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