If people consistently bid 1% over on the internal market, stabilizer will fill over 160K worth of orders per day. Mostly people don't. I understand the inconvenience (have to buy HIVE, have to manage orders, etc.) but it's a huge opportunity to get HBD consistently in volume, and that's how the HBD supply grows.
Apart from the inconvenience, I think people are spoiled being able to get HBD for under a dollar. That worked for a long time. But now, tt doesn't make sense to be that price sensitive given the APR available. You can make back 1-2% premium from yield in very little time.
1% can be a lot in $ for a transaction. And maybe pay another 1% to get back other stables again.
Not really competitive IMO.
And before you answer me: "Hey you can earn big % on this", it's bad for every other use case like using it as a stablecoin for purchases or transactions.
Most people use stablecoins for trading and not yield farming.
The overvaluation won't be permanent. It'll persist as long as it takes to create "enough" HBD to satisfy demand and then it will settle back to $1, which is ideal for other use cases. This is a transitional effect. At larger scale where traders will work on smaller margins, we can get by with less overvalation, maybe 1.0001 or such.
thats true but i would wish for HBD a "on demand" idea. Something like a loan or whatever.
So if needed we can print 10 Million without directly influencing inflation.
Or a sister coin like USD-Hive that is a DAI copy. Something like that. So HBD can be HBD and we have something "different" too.
I mean many horses are not that bad :P
That’s great but most DeFi whales will never be able to figure out the internal market.
The bidding system to get HBD is highly inefficient. Deep liquidity pools is how these things spread.
I’d love to see a lot of HBD being bought 1% premium on the internal market and then deposited into the pHBD pool so DeFi whales can buy in easily and in a way that they understand. No messing with a reverse order book and trying to bid war to get filled on a stable coin
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Oh we agree. I'm just suggesting that if you want to get a lot of HBD to fill the pool, this is the way.