Its a nice project, but am just curious though what will happend if HBD exceed the normal stable value
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Its a nice project, but am just curious though what will happend if HBD exceed the normal stable value
If HBD exceeds the target value, the stabilizer sells HBD to try to reduce the value, which also generates a profit for the stabilizer and the profit is returned to the DHF. If the value is more than $1.05, the stabilizer will also start to convert HIVE into HBD, which removes HIVE from circulation and also produces more HBD which can be sold at a profit (as above).
Anyone with a Hive wallet and their own coins can also do this, taking advantage of the imbalance to potentially generate a trading profit, but the stabilizer does it using DHF funds, all of which are then returned.
Sometimes the HBD price is in the range of $1.10 - $1.20 for a long time. What is the reason for this? Is the HBD stabilizer not doing its job at that moment or are the witnesses entering the hive price with a delay?
Just too much demand imbalance in the market. The stabilizer pushes the price down, but with a finite budget, if there continues to be people willing to overpay, it takes time for the pushes to be effective.
I guess everything is to keep balance in hive for better growth, now i see the need for such technology
You will find an answer to your question in [this post[(/@smooth/request-for-comments-hbd-stabilization-dhf-proposal)
Ok thanks a bunch will go through it