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RE: DAO Deposits Stable Coin to HBD Savings, using Interest to buy & burn DEC daily

in Splinterlands • last year

What is the total market cap of HBD?

How does it achieve a 20% Return which is very high in the real world and much higher than any other stable/safe asset in existence that I know of?

As a serious investor in the real world, these are 2 questions that I would need to understand before I could vote for this. I think its important that everyone understand at least these 2 things in order to vote for this proposal.

Thank you.

last year in Splinterlands by
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     last year  

    A bit of insights that may be helpful about HBD

    HBD has had a 20% savings interest for quite a while now ... the savings rate is voted by the witnesses and we have seen such a consistent stability of the asset during all the ups and downs of the market and that why we have kept it at that rate.

    There are some strong safety dynamics to the Hive backed dollar... that do really well and avoid some problems other backed currencies have.

    The main marketplace for the token is the hive/hbd pair and best interface is https://hivehub.dev/market/advanced

    If you're looking at other markets or coingecko they'll usually be off in their assessment of the value of HBD because they don't look at the trading going on for hive/hbd pair.
    HBD does have a bit higher fluctuation but always comes back to right around $1

    You can also do a blockchain transaction from hive to hbd which uses a 3.5 day median to convert so you'd need to convert whatever assets you have to HIVE most likely to get it over to HBD. (this safety feature of the Hive backed Dollar is both frustrating because of slowness but brings huge safety to HBD)

    Asking what it's market cap is not maybe the best... the answer is... not enough. That's part of the thinking for increasing the interest on the savings account. Increase the amount in existence. However also it's backed by HIVE so there is a limit to how much there can be in correlation to HIVE... HIVE itself would have to go up in price for there to be a lot more of it in existence.

    Also there is an issue with the proposal in thinking the dao can withdraw every day and convert to DEC. It's a every 30 day sort of thing. Which is fine... and maybe they can run a script that does the converting every day.

    I think someone is gonna have to create a script. My suggestion is that the dao claims their savings interest HBD each 30 days reinvests one half then sends the half of HBD meant to burn DEC to another account (safety) with a recurring transfer and then exchange for HIVE in the internal HBD/HIVE market. Then it will have to convert to swap.hive which has a fee. Then uses the trade market or DEC/swap.HIVE pool... then has a burn.

    I assume someone can make this sort of script with not too much effort but should probably be done not with the main DAO account. I mean it's not easy and there are some fees but a good dev will figure this out splinterlands has some devs that are witnesses and know Hive pretty well.

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     last year  

    Thanks Jarvie for giving a better answer than I could possibly ever do. Thanks for also doing some architecting as to how this could work with a possible escrow account

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     last year  

    Hey Jarvie, thank you for taking the time and effort to address these issues. I'm listening to the input from both the pro and against voters. The goal for me is to understand it so that I can make an informed choice. Thanks again, your answers were helpful.

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     last year  

    I'm grateful to jarvie too, for answering your concerns. Please message me on discord at any time if you've got questions. I may have missed your message / tag in mavs (I saw a notification on my phone, but dismissed it in my bleary eyed "just woke up state") - but conversely am happy to discuss this with you on chain, on stream, or indeed anywhere. :)

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     last year  

    HBD has a market cap of 11M, and it is arround 6.5% out of the Hive market cap. If the hbd market cap reaches more than 30%, then the hbd price can drop bellow $1. HBD has no premine so the inly way to create more is trough its regular small inflation or trough HIVE to HBD conversions.

    You can monitor the health of HBD here:

    https://www.hbdstats.com/

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     last year  

    Thank you Jagged! And the People's Guild is a great format, those guys do a terrific job! :)