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RE: Everything You Need To Know About The HBD Haircut Rule And The Latest Updates| The Biggest Risk For The HBD Price

in LeoFinance2 years ago

No because, the HBD supply will drop, but also the HBD price will drop as haircut kicks in, and it cannot put a lot of new HIVE in supply. That is the role of the haircut rule.

There is a cap how much HIVE can be created from HBD, even at low HIVE prices.
Plus this will not play out fast, as the UST/LUNA did, because of the 3.5 days price feed.

This is battletested and has happened in the past, as you can see from the post.