I actually wasn’t aware of the stabilizer providing that much HBD daily at 1% premium. It’s not great but it is workable.
There still remains a few issues with that:
- If I didn’t even know that was there, how will outside whales figure it out
- AFAIK this only applies to buying HBD. So there is no off-ramp liquidity - this is one of the main things turning DeFi whales off from buying HBD
I would love to push this to the hive community though. There’s an opportunity now to buy a bunch of HBD and wrap it into pHBD to provide liquidity that can solve these issues
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Off ramp liquidity comes from the conversion of HBD into HIVE. You can do this yourself (unlike the ability to create HBD at <5% premium, which is essentially a privilege of the stabilizer) using the 3.5 day conversion, or you can sell HBD at a small discount and the stabilizer will buy it and convert it.
As with the other direction, people using the pool don't need to know this. They just need to be willing to sell at a small discount and someone else can arb.
What is the thinking with the 5% premium for creating HBD?
I presume it is a security feature to deter manipulation especially since the HBD can be then converted to HIVE and be a threat to governance.
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I think deter manipulation but I suspect also just a desire to generate a profit for the blockchain in the event of large pumps (which it has done in the past). It mostly wasn't my idea, so I can't say 100%.
I think the idea of a spread is good but I would apply some of the fee in both directions and probably also reduce it.
I think most of us regular folks on Hive were clueless about exact details! We really need to have some place (docs, website...) to have all these important stats in 1 place. !PIZZA !LUV
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@d-zero(1/1) gave you LUV.
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They don't need to. Someone just needs to arb between the pool and the internal market.
I agree. It is the reason for the article. We have to make this stuff known.
This is another solution to aid in the effort. On its own, does not answer everything but it is a way to get some more HBD out there. Even if people get it into savings, that will produce some more HBD. We need to see that number go up a ton.
Only with HIVE and then moving to an external exchange. Again, not great but a workable options. This isnt the billion dollar solution but rather tens of thousands.
There is little doubt we need to get more flowing.
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