create account

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

View this thread on: hive.blogpeakd.comecency.com

Viewing a response to: @blocktrades/rbut61

· @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?
properties (22)
authorurun
permlinkre-blocktrades-rbvch3
categoryhive-167922
json_metadata{"tags":["hive-167922"],"app":"peakd/2022.05.6"}
created2022-05-14 10:43:48
last_update2022-05-14 10:43:48
depth3
children2
last_payout2022-05-21 10:43:48
cashout_time1969-12-31 23:59:59
total_payout_value0.000 HBD
curator_payout_value0.000 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length126
author_reputation93,278,937,613,337
root_title"HBD Defenses: How HBD Is Different From UST"
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd10,000
post_id113,194,231
net_rshares0
@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).
👍  ,
properties (23)
authorblocktrades
permlinkrbw85a
categoryhive-167922
json_metadata{"app":"hiveblog/0.1"}
created2022-05-14 22:08:00
last_update2022-05-14 22:08:00
depth4
children1
last_payout2022-05-21 22:08:00
cashout_time1969-12-31 23:59:59
total_payout_value0.000 HBD
curator_payout_value0.000 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length985
author_reputation1,129,284,763,480,851
root_title"HBD Defenses: How HBD Is Different From UST"
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd10,000
post_id113,209,576
net_rshares2,736,835,980
author_curate_reward""
vote details (2)
@urun ·
For now 20% are sustainable.

For now haircut is fine.

For now everything is ok.


Is only the scaling problem that adds an unpredictable factor in. At some Scale Reputation risk will become the same as HBD would drop to zero.

Social and finance need a as much as the possible secure backbone. Because Social alone is a big topic.

And Stablecoin alone too. 

One can break the other in many ways and open a death spiral caused of other reasons ( bad press).

That are problems on bigger scale.

For now 1M HBD would be absorbed. I think even 10M in a medium to bad market with time if someone would go full degen.

But 100M to Billions? 
👍  
properties (23)
authorurun
permlinkre-blocktrades-rbw8nn
categoryhive-167922
json_metadata{"tags":["hive-167922"],"app":"peakd/2022.05.6"}
created2022-05-14 22:19:00
last_update2022-05-14 22:19:00
depth5
children0
last_payout2022-05-21 22:19:00
cashout_time1969-12-31 23:59:59
total_payout_value0.000 HBD
curator_payout_value0.000 HBD
pending_payout_value0.000 HBD
promoted0.000 HBD
body_length640
author_reputation93,278,937,613,337
root_title"HBD Defenses: How HBD Is Different From UST"
beneficiaries[]
max_accepted_payout1,000,000.000 HBD
percent_hbd10,000
post_id113,209,799
net_rshares682,331,644
author_curate_reward""
vote details (1)