The Lesson From Terra And UST: Insight For HIVE and HBD
The crypto world was shajen by the downfall of UST and LUNA. This is a major lesson for all of us to learn from.
In this video I discuss how the use cases for those tokens were next to nothing. This is something that needs to be considered with HIVE and HBD. Ultimately, we need to keep driving value to both of the tokens. This might not be reflected in the price but gives people reasons to hold the tokens. When we focus upon some of the main areas for the stablecoin, like payments, derivatives, and collateral, we acn see how this will expend the chain of use cases, increasing value.
This was not present with UST or LUNA.
▶️ 3Speak
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the fall of UST and TERRA should serve as an example for all of us and be very aware of our Cryptocurrencies
The use case is the most important and I love how Hive has the safeguards. While we might get a depegging, it shouldn't affect the blockchain that much.
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I think the safeguards are mostly to deter attacks against the peg. We don't know the effects on the blockchain or the price of HIVE if the peg becomes too undervalued on the market. We need to protect the price of HIVE by making more utility for the token.
Bingo!!!
This nails it. We need to keep building the utility which will, in turn, push value to $HIVE. That actually helps HBD because it is backing.
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We need to keep building up both tokens and the utility. That is where the extreme value is going to come from.
The interdependence of the two means that pushing value to both.
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It's important to diversify your portfolio. And if possible only invest in stable coins !
The second layer bonds system for HBD you were proposing + long-term locking on 1st layer should make HBD very interesting.
That along with other additions are going to build value for HBD. The time lock vaults will really add a layer that is going to strengthen it.
Of course, we have to keep adding value to $HIVE also.
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Summary:
In this video, Task discusses the lessons learned from UST and Terra Luna and applies them to stablecoins. He talks about the recent clarification by New York bureaucrats requiring stable coins to be 100% backed. Task highlights the importance of use cases for stablecoins, using examples of UST, Luna, and HBD. He emphasizes the need for diversification of use cases to increase the value and resilience of stablecoins like HBD. Task explains the necessity of creating infrastructure and depth in the stablecoin market, particularly focusing on creating derivatives and expanding into different financial products.
Detailed Article:
Task starts by discussing the recent developments in New York regarding stablecoin regulations, emphasizing the need for 100% backing for stable coins to be issued in the state. He connects this with the challenges faced by UST and Terra Luna, stressing the importance of use cases for stablecoins. Task draws parallels between UST, Terra Luna, and HBD, highlighting the need for a strong underlying use case for stablecoins like HBD to thrive.
He delves into the lack of use cases for UST and Luna, pointing out that their downfall was rooted in a lack of solid reasons for holding these tokens beyond speculation. Task argues that to prevent such failures, stablecoins like HBD need to build out diverse use cases to increase resilience. He mentions the importance of payment systems, derivatives, and collateralization markets in adding value to stablecoins.
Task suggests strategies to build a strong foundation for stablecoins like HBD, such as creating future contracts, investment opportunities, and time vaults. He emphasizes the need for depth in the stablecoin market by expanding into various financial products and services. Task stresses that value creation, rather than just focusing on the token price, is crucial for the long-term success of stablecoins.
He mentions the efforts by LeoFinance in creating derivatives like PHBD and liquidity pools, but notes that more diverse use cases are required to enhance the strength and resilience of stablecoins. Task concludes by underlining the importance of continually building out use cases for Hive and HBD, which in turn will increase the overall value of the Hive blockchain and its native token. He asserts that the value creation stemming from strong use cases will ultimately reflect in the token price, forming a defense system against market fluctuations.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.