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RE: Our Focus on Deepening the Liquidity of pHBD

in LeoFinance3 years ago

They could, but it would take quite some time. The best way to do it would be to buy in small few $k chunks, wait for someone to arb the pHBD price back down to $1, then buy again and keep doing that for several days or even weeks in the case of buying $300k.

This is why HBD needs more liquidity. pHBD having $5M in the LP could solve this

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Strangely, with a lack of liquidity, the price should skyrocket, but this is not happening yet. What caused it? As I understand it, the interest in the coin is very high.

You mean the price of pHBD?

It’s always pegged to $1 - same as the price of HBD since it can be freely arbitraged

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I understand that HBD will strive not to fall much below the dollar, but it cannot become more expensive how was it before? Sorry, I thought that if the Hive overtakes the HBD, then the HBD will reach for it.

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It’s always possible. HBD is a soft-peg to $1. Arbitrage will always seek to even it back to $1. I don’t foresee another event like the past as that was a coordinated event by Koreans on exchanges to skyrocket HBD and make a huge profit.

If it does happen, then that’s awesome for us! Huge profits.

If it doesn’t, then HBD functions as it should: pegged to $1

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