Horrendous Day For Some Stable Coins
I don't know about what your thoughts are, but something tells me we have to do better than this with HBD. The lowest I have seen it for some time when we are trying to sell our very own HBD as a stablecoin. I see HBD has since bounced back up a whole 3c, but this is too volatile for a stable as this is not holding its peg.
If we have any hope of luring investors into HBD outside of our HIVE eco system then the price must be stable or more stable than what we saw today. 10c away from $1 worth of HIVE is just not good enough and surely there needs to be a fund or something that adds HIVE to support the price movement. I am no tech genius and see the need for action as we are kidding ourselves if we want to grow HBD the way we are.
Hold that thought as lets take a peek at some others as TERRA LUNA's stable UST had a shocker as well today. This is obviously no safe haven and possibly a decent opportunity to make some profit as one would expect UST to go back to $1. I am sure Terra LUNA will come out with some unforeseen excuse to cover this embarrassment. Their whole investment of LUNA relies on UST being stable so what does that make LUNA?
USDT has been the best performing stable coin for some time and they are obviously doing something right.
If you are going to use a stablecoin as a form of payment then it has to remain close to the peg. If I was an outside investor I would be interested in the APR but I would also be concerned about a 10% variance within a few hours.
Don't get me wrong I am not kicking our precious HBD but would like to think we can come up with a better solution than what we currently have. This is still early days and the likes of LUNA with their UST have a jump on us working a magical algorithm that may or may not exist. I do think theirs is all smoke and mirrors as whatever they are doing is definitely not working and are selling a story more than the real deal.
BUSD did rather well considering the others and held 98.6c today so this is possible to do. I do think we have something special with HBD and it needs some work and love, but we have enough smart people in here to fix this. No doubt this is being worked on and a better formula will be used to at least make an improvement.
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I'd probably never move anything in to Tether unless I had to. I have read far too many bad things about it. It would definitely not be my first option given the other stable coins that are available out there.
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It was a shock to the system, I would look at it in a few weeks to see how it recovers.
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UST is definitely collapsing, now at $0.90 an hour later. The algo + partial reserve scheme never made sense and people will lose faith in it now. The only way to save it is to stop fighting and let the air out of the bubble, then rebuild with a much lower market cap.
HBD has always had such swings and has always returned to the peg. It's stable enough for its purpose, distributing rewards on Hive. Maybe this is a sign we should focus on what makes Hive unique instead of imitating DeFi Ponzi schemes.
There is a BUSD-HBD trading pair on Ionomy. If you don't mind the counter party risk, you can create a buy order for HBD with BUSD at just under $1.00, and a sell order at just over $1.00. Take into account the trading fee percentage and you risk missing out on gains in other things but there is chance to make money this way and provides a service to allow people to trade and this very activity would stabilize the price (if you had big volumes).
I think this will be an issue for any algorithmic stable coin but I think the stabilizer will push the HBD back to $1 eventually.
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HBD has so many use cases within the Hive ecosystem. I think because the most popular use case is HBD is also a currency and a lot of people including myself sell and trade HBD causing the fluctuations in price.