An algorithmic stablecoin that relies on human intervention to maintain an unsustainable yield?
Lol
This is why I'm not in support of backing HBD with BTC or anything else. We need a robust and decentralized system that is not dependent on some other cryptocurrency outside of HIVE's control (not to mention a dramatic one with very little technological progress) and especially not something that is based around human intervention. Terra's version is of backing UST with BTC is epitome of fixing something that isn't even broken.
!PIZZA
!LUV
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I agree with you although I think the idea of backing HBD with some BTC as insurance was meant to be human free. I am not sure that is technically possible.
That said, I believe we need to focus upon making HBD the collateral, not backing it with collateral. That is the difference.
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I believe it involved some multi signature account. I didn't follow all the details. These things adds complexity and larger attack vector even if it becomes completely based on smart contracts. A simple and efficient system with maximum decentralization is best. Currently there is nothing that can compete with HBD when you look for a simple decentralized algorithmic stablecoin. I like to stick with the KISS Principle :-)
!PIZZA
As I said on numerous occasions, could be a great investment for Hive to have $1 million in BTC. However, ultimately, we want to build the value of HBD through development of use cases. Then it can stand on its own as collateral.
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I recently spoke somewhat positively about Hive's proposed BTC insurance solution for HBD.
But the more I think about it, the more I agree with you that it's simply not worth it.
While it's just insurance, there is so many bad connotations that come with centralising supposedly decentralised protocols.
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KISS Principle is very underrated.
!PIZZA
(1/1) gave you LUV.
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