Introduction
After everything that is going on this year on crypto space related with exchanges and lending platforms to be insolvents (ex: FTX, Celsius, BlockFi, Alameda Research) and after I published the post about DHF funds transparency, I was contacted by some hive users concerned about Hive Engine funds.
It is a legit preoccupation that can exist since on Hive Engine has some synthetic tokens that are pegged by the real tokens/coins by Hive Engine.
This means that Hive Engine team controls the funds that are backing this synthetic tokens.
The synthetic tokens that exist on Hive Engine are SWAP.BTC, SWAP.ETH, SWAP.LTC, SWAP.BUSD, SWAP.WAX, SWAP.DOGE, SWAP.USDT, SWAP.BNB, SWAP.BLURT, SWAP.HBD, SWAP.STEEM, SWAP.EOS, SWAP.MATIC, SWAP.BCH, SWAP.SWIFT, SWAP.HIVE, SWAP.TLOS, SWAP.GOLOS, SWAP.SBD, SWAP.BTS, SWAP.ENG, SWAP.BAT, SWAP.DAI, SWAP.UNI, SWAP.LINK, SWAP.POLY and SWAP.ENJ.
Synthetic Tokens
I tried to find the wallets addresses that are holding the real assets that are backing the synthetic tokens outside of Hive ecosystem, but I was not able to find it either on Hive Engine website or in some post.
So, I will only focus on Hive ecosystem synthetic tokens like SWAP.HIVE and SWAP.HBD where the owner accounts are @honey-swap and @graphene-swap.
SWAP.HIVE
To be able to use concrete information, I made a little withdraw just to know what is the responsible hive account to process it.
According to the image above, @honey-swap it is the account responsible for SWAP.Hive.
According to HE, exists 9 007 199 254 740 988 SWAP.Hive in circulation.
From this total in circulation, @honey-swap has 9 007 199 249 204 337. This is normal since they minted almost the entire supply, and then they use it to sent to users when they do a Hive deposit.
So, if we deduct the honey-swap amount exists 5 536 651 SWAP.Hive in circulation.
For SWAP.Hive be pegged 1:1 ratio to Hive it is necessary that honey-swap have 5 536 651 liquid Hive.
Currently, honey-swap has 4 415 732 Hive and graphene-swap has 1 464.026 making a total of 4 417 196.026 liquid Hive.
According to this, It is missing 1 119 454.974 liquid Hive to SWAP.Hive be really pegged to Hive.
I really don't know if there are other hive wallets that have the rest of the funds.
SWAP.HBD
I did the same as I did for the SWAP.hive and for SWAP.HBD the responsible hive account it is @graphene-swap.
According to HE, exists 219 175.00902 SWAP.HBD in circulation.
From this total in circulation, @graphene-swap has 116 662.517. This is normal since they minted more supply to be able to transfer SWAP.HBD when a user deposits HBD.
So, if we deduct the graphene-swap amount exists 102 512.49202 SWAP.HBD in circulation.
For SWAP.HBD be pegged 1:1 ratio to HBD it is necessary that graphene-swap have 102 512.49202 liquid HBD.
Currently, graphene-swap has 101 429.390 and honey-swap has 41.453 HBD making a total of 101 470.843 liquid HBD.
According to this, It is missing 1 041.64902 liquid HBD to SWAP.HBD be really pegged to HBD.
However, if we take in consideration 17 657.285 HBD that graphene-swap has on HBD savings we can say in 3.5 days all the needed HBD it is available to keep the Peg.
Conclusion
Since I don't have access to the addresses that are holding the funds, because the funds can be split by several wallets.
Taking this in consideration, I was not able to concluded if Hive Engine it is holding 1:1 ratio on the original tokens/coins.
Maybe @aggroed or someone from hive engine team can help us to get the information that I need to finish this study or show us that assets are in the wallet and hiver's can stay calm because it will not happen to Hive Engine what happened with others crypto projects.
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Hive Engine is an exchange, so the golden rule applies in this case too. "Not your keys, not your cryptocurrencies".
That is True but currently if you want to have any 2nd layer token you are obligated to use Hive Engine.
So, it is a litle difficult to not have any funds on Hive Engine
check hive-power
I have checked hive power but that it is not liquid Hive if we have a bankrun to withdraw all the swap.hive there is not enough hive to pay everyone because the power down takes 13 weeks to be completed (more a less 3 months).
Why the users funds are staked instead to be liquid and available to ensure the peg exists without wait for power down?
But with some powered up maybe the yields can make the collateral eventually greater than the printed assets
I really don't think like that.
If the assets are the ones that give the PEG, they always need to be liquid and available to the withdrawal. Otherwise, if a bank run occurs, there will not exist enough assets for everyone.
Users/Peg assets shall never be used to yield.