There are four mechanisms that peg the price. Two downwards, two upwards.
- HBDStabilizer sells HBD and converts the Hive back to HBD by transfering to DHF (making a profit for DHF)
- HBDStabilizer converts HBD in order to buy HBD with Hive (after 3.5 days) and then return it to DHF. (This only started yesterday, buy pressure will start to come in tomorrow at 14:32 UTC)
- Convert function on HBD which allows you to receive collateral value of HBD after 3.5 days
- COMING WITH HF25: Convert to HBD function which allows Hive to be converted to HBD over 3.5 days with a 5% burn.
That sums it up ideally. I wish I had this comment when I wrote the post. It would have fit in very nicely.
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