Clearly shows the HBD to HIVE conversion mechanism in action.
...and yeah, the results are pretty disappointing.
The difference between HBD and UST is that USTs ability to do this is instant where HBD takes 3.5 days and converts based on the average over the 3.5 day period.
So what is the actual reason behind us using the 3.5 day conversion and them not?
And what would changing it to instant like UST, do to our system?
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Not sure why they chose 3.5 day wait but doing it instantly would create the ability to maintain both the peg and possibly stabilise Hive price alot higher.
You'll notice as Luna starts to dump it picks back up relatively quickly that is because people are minting my UST and then as UST peg breaks they convert back to Luna at a profit until the peg is maintained.
This constant back and forth creates a more stable token and stable coin.
Also if if was instant, I should have come out with a .38c profit not a 4 Hive loss. That's a huge disparity.
My guess is that it is a security issue.
Of course, the arbitrage can take place on the internal market. The issue is liquidity. We simply need a lot more HBD on the market.
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