HBD far from stable but...nonetheless, very good opportunity to accumulate HIVE.
(Source)
Change of tactics for now. HIVE has fallen sharply, 18% against the $ and 11% against BTC...
So has HBD, which has fallen a little over 5%, although it obviously remains strong against BTC.
But as you may already know, as long as HBD is below its peg (aka $1), the conversion process presents itself as a good opportunity.
How does it work?
The HIVE blockchain makes it possible to convert HBD into HIVE in 3.5 days at the rate of receiving $1 in HIVE for each HBD... do you see the opportunity?
Yes, although the HBD has a real market value of $0.90 at the time of writing this post, after 3.5 days of conversion, you will receive the HIVE equivalent of $1, or 10% more.
I'll explain it better: The blockchain automatically process the exchange over a period of 3.5 days, at the end of which, each HBD will be converted on liquid HIVE with a value of 1 USD worth in HIVE tokens. This option is very convenient when HBD price is below 1 USD , which is currently the case more or less...
I don't know for how long HBD will be out of its peg, but it doesn't seem like the various strategies to keep HBD's peg at $1 are working at 100% efficiency when the market falls apart.
So for my part, this poses a change of strategy, half of my liquid rewards which were going in full to my "savings wallet" to get 12% APR, will now go to the HBD to HIVE conversion.
The HIVE obtained will go to POWER UP.
HIVE offers multiple solutions depending on the conditions, we just have to be a little attentive and use them in each case.
New conditions, new plans...
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I didn't knew that...
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come on! cannot believe you 🤣
yep...im a noob... 😀
No. I know remember that I knew about it, now after checked it one more time, but wasn't using because at some point HBD was too stable and HIVE was on a rise. Thanks for the reminder though. As long as HIVE is under $1 it makes sense to use the feature.
What if after 3,5 days the price of HIVE rises above the $ mark will I still be getting HIVE converted to the rate I did when it was under the $.
More reason I feel leaving some liquid HBD is also important for opportunities like this.
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I think for both the average price of the period is concerned only
Good idea, it's time to swap.
...er, but how do you do that? I assume it's not in the normal HIVE wallet market, or is it?
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You can do it on keychain
an also in the peakd wallet
Thanks man!
I'm glad i read this post. i didn't realize the peg was broke again.
thanks for lighting the way.
you are welcome
😂 I didn’t know the market helps automatically converts to exactly $1 worth of Hive, I will have to test run this myself. Thanks for the tip.
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welcome