The Fallout Over UST And What They System Really Is

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▶️ Watch on 3Speak


To create an alternate system, we have to truly understand how the existing one works. Unfortunately, few really do which is why we see issues in trying to replace it.

In this video I discuss UST and how that is an indication of where we misdiagnose things. For HBD (and Hive), we need to take a different approach.


▶️ 3Speak



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24 comments
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pixresteemer_incognito_angel_mini.png
Bang, I did it again... I just rehived your post!
Week 105 of my contest just started...you can now check the winners of the previous week!
!BEER
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Thanks for the update on these issues, they will come for it sooner, rather than later. {Money} We just have to hide it where they cant get it!

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Twitter: STABLECOINS ARE CRASHING
Me: looks at HBD meh
goes to see what Task is saying LOL

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LOL not sure that is the best idea but I guess it is as valid as following twitter advice.

Both of us are probably off the deep end.

Posted Using LeoFinance Beta

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😂 Well I figure somewhere between Twitter panic and your general chill attitude, is the middle ground. LOL

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I actually wanted to invest in UST. But I couldn't buy any from the exchange. I'm not entirely sure what happened. But I couldn't install terra on my metamask. This was a while ago, I was curious more than anything. And defi kingdoms I couldn't buy that Jewels. So now I just concentrate on Polycub, Leo, Hive, Cub and Hbd. In a way I'm kind of glad I couldn't but those crypto !

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Yes although we have to make sure that we stay vigilant in building the use cases for HBD and enhance the resiliency.

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As an algorithmic stablecoin, I definitely see the need to analyze what went wrong with Terra. In that case, we can see what happens if a bunch of HBD was converted into Hive. Rather than instantaneously, it's a 3.5-day process so it gives us some time to react. However, the inflation of Hive could be quite crazy and I do think Hive's price would drop a lot if the person selling the Hive. So I think your suggestion of having a 5% fee would be a good solution to reduce that supply being left on the market.

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The inflation is mitigated by the haircut also.

So we have a few measures in place. I think a 5% conversion fee going from HBD to HIVE could also help to keep the balance between HBD and HIVE.

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(Edited)

Ok, after seeing what happened with UST, I'm sold on the 5% conversion fee on HBD to HIVE as well.

It is also important to think about what happens with the fees. Simply burn them? Or find them a use case that doesn't threaten the system?

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Yea and it's not like you always have to pay the 5% fee if you buy on the internal market. I believe that 5% should be burned but a portion of it could also go to the DHF if they wanted to.

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I'm still not a fan of burning tokens, especially on the 1st layer. The only good thing I see from such an action is that it's very easy to code, unlike some other alternative options.

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Another alternative is to distribute this to everyone who is holding HP. It would add to the inflation for those who are staking in the network.

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I think that's a pretty good idea. The new inflation would go to holders, based on their stake, which would improve the attractiveness of holding HIVE powered up and, being illiquid, it's not a risk of being dumped right away to accelerate a potential dump.

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I think you might have a good time reading this article/analysis on what happened with cryptocurrency markets lately: https://onchainwizard.substack.com/p/how-to-make-800m-in-crypto-soros

I think HBD could handle a situation like this better. LUNA did not have much value outside of its stablecoin ecosystem. HIVE on the other hand has many DAPPs built on top of it along with a great community. I think the situation would have worked out better for LUNA if it was acting as another EVM chain with a healthy ecosystem of DAPPs.

I am also interested in seeing some stable assets built pegged to other "real" assets like precious metals. BitShares already had thse. Unfortunately they didn't take off well.
!PIZZA

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We also need use cases for HBD. You are right about the DApps which LUNA doesnt seem to have but we have to do the same thing on the HBD side.

I just wrote an article about this.

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Projects like @ragnarok.game can help with this eventually. We already have many services accepting cryptocurrency as payment. As a first step we should try to get them to accept HBD as one of the cryptocurrencies. If they can accept volatile crypto, they can certainly accept a stablecoin (unless some regulator is up their throat). HIVE Pay could be a very important player in this.
!PIZZA

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I heard that Citadel were shorting it. Could that happen with HBD?

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Don't you need to be talking way more trash about HBD if collateralizing a stable-coin is an invalid strategy?

Personally I think we need to be collateralizing HBD even more by allowing long/short collateralized debt positions.

Also by having an AMM internal market we can manipulate yields on the fly and create that desperately needed elasticity.

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