Liquidity pools don't target a peg at all. They are agnostic to the value. (As I'm sure you know, but following up here to agree that comment was dumb.)
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Liquidity pools don't target a peg at all. They are agnostic to the value. (As I'm sure you know, but following up here to agree that comment was dumb.)
Nobody ever said they did. The point you're misrepresenting was people theorizing that more Liquidity Pools, and those LPs being picked up in price feeds, would help stabilize the price of HBD.
I don't actually see what more liquidity pools would do. There are liquidity pools now, and anyone who wants to invest in them can. So the stabilizing effect is there. In fact it is reasonably stable, and that may be one reason.
It's not enough to stabilize the price to the peg however. For that you need something that is contingent on the relationship between the price and the peg, such as the conversion functions and the stabilizer bot.
I agree that should be done, but, in practice, is there a big difference in the price on the pools and the price on centralized exchanges? I suspect not, and if there is not, then adding these pools to the price feeds wouldn't do much.
Do you think there is value in a liquidity pool with USDT on BNB or BSC and other dollar pegged assets with HBD? I don't know if I am the only one here, but I sure wish I could go directly from USDT to HBD without some floating asset in the middle several times and all the while losing a lot of value with fees.
Does this suffice?
https://hive.blog/hbd/@dalz.shorts/the-best-place-to-buy-hbd--beeswap
Thank you but what I need is a way to transfer USDT that lives on BSC chain to HBD which lives on Hive. So perhaps if there is another step or set of steps to get from USDT to SWAP.HBD, then I could make convert it that way. It's fine if privex supports it because then I can spend it there.
Doesn't Binance convert USDT to BUSD?
Probably, I found a wallet that does it. I'd rather not use Binance. They kept the dollars I sent to my account there and never reimbursed me. They have also kept people's Hive. In both these cases they had the private keys for the addresses these funds were sent to. It turns out the Trusted Wallet lets you convert USDT on Binance Chain to USDT BSC and then through a smart contract get BNB on BSC. Then Hive-Engine allows you to deposit BNB, for trading to some other HIVE-Engine token and then back to another Level 1 token via the withdrawal mechanism.
is the talk about the internal liquidy pool or general liquidy pools?
I mean with conversion mechanic integrated into a pool ( or on top) with auto compound + initial investment from DAO, HBD could become real stable. Because the fear of a bottleneck is gone ( for large amounts).
I'd have to see a very specific proposal to comment. That's more than a pool, and we already have conversions and pools, so I'm not sure anything is actually improved by combining them.
In general, I truly believe more liquidy on HBD/Hive + conversations ( from HBD-stabilizer or community in a fund) will help massively in terms of:
Make HBD more stable, because larger trades are possible (less fear of get stuck) + more attractive to maintain price, because of larger amounts can be used for that ( look exchanges trade BUSD/USDT in xx Millions and make some profits).
But for that volume is needed :)
And if the pool has some base investment from DAO that never will be withdrawn, it would work as a burn/ DEFI 2.0 with contract-owned liquidity.
I would also expect, it's a good sell point for HBD " look you can trade 1 Million USD at once.
With a swap fee that auto compound, I see a working instrument that can help to make HBD more stable.
Remove the fear of bottleneck is in crypto a super power and a onchain pool L1 would be the most decentralized DeFi protocol in the entire crypto space.