Great information on the HBD stablecoin pegging system and how its algo works with Hive. That should offer more clarity for non-Hivers investors and also make others want to participate in the pHBD pool on PolyCUB platform.
One question aside considering that it is a stablecoins paired pool, can you have Impermanent Loss on it?
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If the peg brakes yes, but as long as the 2 assets keep the peg it should not be an issue.
But that is only my 2 cents maybe I am wrong
Yes indeed! PEG should be maintained and if it is, no IL.
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You are right.
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I think with the 50% of HBD savings on Hive, it's a no loss. In case of any hack on Polygon (that is of it can ever happen with the cold wallet in place), it will be possible for everyone investing in pHBD to at least recover the wrapped HBD with 10% savings interest at least.
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He was referring to the loss due to one pair going down against the other and having the pool sway to one or the other.
As others mentioned with stablecoins, this wont happen unless the peg is broken.
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Arbitrage is vital for pegs to hold. That is why having a pool of liquidity is vital. We are going to see this LP fill up over time. It might take a few more weeks to get to $500K.
Once we have liquidity in there, then we can start to see some more trading activity as people find ways to make money off the move away from the peg.
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